Singapore legislation

Clause 8

of Monetary Authority of Singapore (Amendment) Bill

Clause 8

New Part 3A

The amended principal Act is amended by inserting, immediately after section 15, the following Part:“PART 3ARESERVES MANAGEMENT GOVERNMENT SECURITIESLimit on issue of RMGS to Authority15A.—

(1)

In return for the issue of reserves management Government securities to the Authority under this Part, the Minister may, subject to subsection (2), accept from the Authority foreign reserve assets of an amount which the Authority considers is in excess of its requirements for performing its functions and duties in the conduct of monetary policy.(2) The total amount of reserves management Government securities issued under this Part and not redeemed must not at any time exceed $580,000,000,000, or any higher amount specified in a resolution of Parliament with which the President concurs in the President’s discretion under Article 144(1)(a) of the Constitution.(3) In applying subsection (2) —

(a)

any foreign reserve assets accepted under subsection (1) in exchange for any RMGS issued must be converted into Singapore dollars at the appropriate rate of exchange on the first working day immediately before the RMGS is issued; and

(b)

any foreign reserve assets transferred to the Authority on redemption of any RMGS must be converted into Singapore dollars at the appropriate rate of exchange on the first working day immediately before the day the RMGS is redeemed.(4) The valuation of any foreign reserve assets that are not in the form of cash must be determined solely by or on behalf of the Minister, and not the Authority.(5) RMGS must not be issued to a person other than the Authority.Terms of RMGS15B.—

(1)

Every RMGS issued under this Part is redeemable at par only.(2) Every RMGS —

(a)

is not transferable without the consent of the Minister; and

(b)

is issued subject to such other conditions as to repayment, redemption and other matters as may be agreed between the Minister and the Authority, which may include —

(i)

repayment of the principal sum in the form of financial assets not in the form of cash or not denominated in the currency of Singapore or both; and

(ii)

redemption of the RMGS before the maturity date specified in the RMGS at the election of either the Government or the Authority.Principal sums and interest charged on Government Securities Fund15C. The principal sums and interest payable in respect of any RMGS are charged upon and are payable out of the Government Securities Fund without authority other than this section.”.

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