HK, S'pore sign repo deal

HK, S'pore sign repo deal

HONG KONG (Reuter): The Hong Kong Monetary Authority (HKMA), the territory's de facto central bank, and its Singaporean counterpart, the Monetary Authority of Singapore, signed a bilateral repurchase agreement on Saturday, the HKMA said in a statement.

It is the seventh such accord secured by the HKMA, which has already signed bilateral repurchase agreements with central banks of Australia, China, Indonesia, Malaysia, the Philippines and Thailand.

A bilateral repurchase agreement is the simultaneous agreement to buy securities for an agreed amount of cash and to sell back the same securities at a specific later date for a specified amount.

Highly liquid U.S. dollar government securities are the instruments used in all the repurchase agreements signed between the HKMA and regional central banks.