MAS and Bank Indonesia extends $10b bilateral financial agreement

The two extended the agreement until 4 November 2022.

The Monetary Authority of Singapore and the Bank Indonesia have extended their $10b bilateral financial agreement until 4 November 2022.

The arrangement has been endorsed by Indonesian President Joko Widodo and Singapore Prime Minister Lee Hsien Loong, and aims to support monetary and financial stability in both countries amidst the on-going recovery from the COVID-19 pandemic.

Under the agreement both countries agree to a local currency bilateral swap that allows for the exchange of local currencies between the two central banks of up to SG$9.5b or IDR100t ($7b). The two countries also agree to a bilateral repo agreement of $3b that allows for repurchase transactions between the two central banks to obtain USD cash using G3 Government Bonds as collateral.

The bilateral financing arrangement was first established between the Bank Indonesia and MAS in November 2018. It has been extended annually since.