Is the Government issuing Reserves Management Government Securities (RMGS) to bolster its reserves?
No. RMGS issuance does not change Singapores net asset position. This means that the issuance of RMGS does not increase the size of our reserves.
As the amount of RMGS that the Government issues will be equal in value to the amount of foreign assets it receives, the Governments assets and liabilities will increase by the same amount. Our net assets, or assets minus liabilities, remain unchanged.
Related questions
What are Reserves Management Government Securities (RMGS)?
Why is there a need for the government to issue Reserves Management Government Securities (RMGS)?
Singapore has high levels of Government debt as reported in the CIA Public Debt Factbook. Do we have enough assets to cover our liabilities?
How does MAS accumulate Official Foreign Reserves?
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