Singapore's central bank said Thursday that it has transferred 75 billionSingaporedollars (US$55.14 billion) worth of foreign reserves to the government.
The Monetary Authority of Singapore made the transfer by subscribing to Reserves Management Government Securities, a new mechanism that allows MAS to transfer excess official foreign reserves, or OFR, to the government for longer-term investment by its sovereign wealth fund.
After the transfer, MAS's foreign reserves are at about 95% of the country's gross domestic product, well above the central bank's estimated optimal level at around 65% to 75% of GDP.
“MAS expects further transfers of excess OFR to the government over the course of the year,” in order to bring the OFR-to-GDP ratio to its optimal levels, the central bank said in a statement.
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