A joint statement said the arrangement will encourage bilateral trade and direct investment for the economic development of the two countries. The two economies are expected to be among the fastest growing in the world this year.
Swap financing: Interest rate and currency swaps, LTFX, FRAs, caps, floors, and collars : structures, pricing, applications, and markets
It will also facilitate internationalisation of the yuan.
Interest Rate & Currency Swaps: The Markets, Products and Applications
The move was announced yesterday by the People's Bank of China (PBC) and the Monetary Authority of Singapore (MAS). The arrangement will see yuan liquidity of up to 150 billion yuan and Singapore dollar liquidity of up to $30 billion.
Cross Currency Swaps
The setting up of the facility with the PBC was announced at the 7th Joint Council for Bilateral Cooperation meeting between China and Singapore in Beijing.
MAS said the arrangement is a 'key pillar of cooperation between the PBC and the MAS to strengthen regional economic resilience and financial stability'.
Currency Swaps
