What are Reserves Management Government Securities (RMGS)?

RMGS is a type of security that the Government issues to MAS, for the sole purpose of facilitating the transfer of Official Foreign Reserves (OFR) not needed by MAS, to the Government for longer-term management by GIC.

Only MAS may subscribe for RMGS. This is unlike other Government securities that MAS may subscribe for, to develop Singapores bond market.

MAS decides the amount and timing of its OFR transfers to the Government, and hence its RMGS subscriptions. MAS may only use foreign assets as consideration to subscribe for RMGS. RMGS are non-marketable, and MAS may redeem these RMGS before maturity at par.

MAS will only transfer OFR above what it needs to conduct monetary policy and support financial stability. MAS has assessed, taking reference from internationally accepted measures of reserve adequacy and MAS practical experience in foreign exchange intervention, that the optimal amount of OFR is between 65% to 75% of GDP.

For more information, click here for the explanatory brief for the MAS (Amendment) Bill, or click here for the Second Reading Speech.