What are the benefits of transferring the Official Foreign Reserves (OFR) to the Government?
GIC invests in longer-term, high-yielding assets rather than in liquid but low-yielding assets compared to MAS.
Placing OFR above what MAS requires for the conduct of monetary policy and support of financial stability with GIC allows such assets to be invested for longer-term returns.
Related questions
Is the transfer of foreign assets from MAS to the Government to make up for GICs losses?
Who manages our reserves?
Why is there a need for the government to issue Reserves Management Government Securities (RMGS)?
How is Official Foreign Reserves (OFR) accumulated by MAS? Does Reserves Management Government Securities (RMGS) change this process?
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