To maintain monetary and financial stability, Bank of Indonesia (BI) and Monetary Authority of Singapore (MAS) established financial agreement valued US$10 billion, for foreign exchange liquidity access. The agreement was signed on Monday (Nov 5).
The one year-agreement consists of two parts. Swap bilateral agreement in local currency, up to SG$9.5 billion or Rp100 trillion. With this agreement, each can obtain foreign currency from another central bank in exchange for domestic currency.
While the other one is bilateral repurchase agreement in foreign exchange, an update of a previous agreement. This is an additional US$2 billion repurchase value, to US$3 billion. Both Indonesia and Singapore can get foreign exchange liquidity in US Dollars with collateral in government securities.