Thai, Singapore central banks sign pact
- Published: 26 Jun 2012 at 00.00
- Newspaper section: Business
The Bank of Thailand and the Monetary Authority of Singapore have entered a reciprocal cross-border collateral arrangement that allow banks in the two countries to use pledged collateral in each other's currency for liquidity.
Prasarn Trairatvorakul, the Bank of Thailand's governor, signed a memorandum of understanding with Ravi Menon, managing director for the Monetary Authority of Singapore, on Saturday.
Under the arrangement, eligible financial institutions operating in Singapore may obtain Singapore dollar liquidity from the Singaporean's central bank by pledging baht-denominated financial assets from the Thai government and central bank securities. Similarly, financial institutions may place Singapore dollar-denominated assets and Singaporean government and central bank securities for baht liquidity.
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