S'pore, RI in repo deal

S'pore, RI in repo deal

SINGAPORE (Reuter): The Monetary Authority of Singapore (MAS) and the Bank of Indonesia have agreed to establish a repurchase agreement line, according to the Television Corporation of Singapore (TCS).

The state-owned broadcaster said a Memorandum of Understanding had been signed on Saturday between the two central banks during an annual bi-lateral meeting.

The repurchase line will provide an alternative source of liquidity which either side can draw on.

Sources at Bank Indonesia told The Jakarta Post that the Indonesian central bank would also sign similar agreements with the Hong Kong Monetary Authority and the Central Bank of Thailand .

The agreements would be signed today during an informal meeting of central banks and monitories of Southeast Asia in Hong Kong.