posted on Feb, 17 2009 @ 03:19 PM
Not sure if anyone has found this yet-
SINGAPORE has set up a deal with the United States Federal Reserve that will ensure banks here have sufficient access to US dollars if they need
The Monetary Authority of Singapore said yesterday it has joined the central banks of Brazil, Mexico and Korea in establishing temporary swap lines
with the Fed, which will provide US$30 billion (S$44 billion) of greenback liquidity in each country.
What is the swap facility for?
The swap facility is only a 'precautionary measure' at this point in time, MAS said yesterday. If global conditions deteriorate and banks in
Singapore experience difficulties in obtaining US-dollar funding, they can turn to MAS for assistance. In turn, MAS can use the swap facility to
exchange Singapore dollars for US dollars directly with the Fed.
This will increase the availability of US dollars to banks and help to prevent borrowing costs from spiking.
The move, a first for Singapore, is aimed at improving liquidity in global financial markets and easing potential difficulties in obtaining US
dollars, MAS said in a statement.
The cost of borrowing US dollars has spiked recently as banks become more cautious about lending to one another.
But the Singapore central bank stressed that the swap line, available until April 30 next year, is simply a 'precautionary measure' for now, much
like the recent decision to guarantee all bank deposits here.
for those of you who don't know, Singapore is akin to the UAE in Asia. I have many friends from there... everyone is rich and well educated etc.
Funny-- no one i met from singapore has ever spoken anything but English. Its their first and only language... most laugh or act disgusted when I
inquire what their native language is. "its english, you dummy!"
ya, im the dummy.