China, Singapore allow direct renminbi trading

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renminbi_countChina and Singapore have agreed to allow direct trading between each other’s currency, Singapore’s central bank said on October 22.

The move, along with other agreements on financial cooperation, is expected to bolster Singapore’s status as a leading offshore trading center for the Chinese yuan, officially called the renminbi (RMB).

“China and Singapore will introduce direct currency trading between the Chinese yuan and Singapore dollar,” the Monetary Authority of Singapore (MAS) said in a statement, adding that details will be announced separately.

China will also grant Singapore-based investors a 50-billion-yuan ($8.2 billion) investment quota under its Renminbi Qualified Foreign Institutional Investor programme, MAS said. This would allow investors based in the city-state to use the yuan to invest in Chinese stocks and bonds.

The programme “will help to diversify the base of investors in China’s capital markets and promote adoption of the RMB for investment”, MAS said.

Chinese institutional investors will also be allowed to use the yuan to invest in Singapore’s capital markets. In addition, new measures are being studied to allow cross-border flows of RMB between Singapore and Suzhou Industrial Park as well as Tianjin Eco City.

Relevant agencies in Singapore and China are also in discussions to facilitate China-incorporated companies, which have received regulatory approval to list directly in Singapore.

“The new initiatives will further promote the international use of the renminbi through Singapore,” the MAS said.

China’s rise as the world’s second biggest economy has seen the yuan take on a bigger role in international financial markets. Britain last week said that direct trading between the yuan and the British pound will be allowed. China also has similar direct trading arrangements for the yuan with the US dollar, the Japanese yen and the Australian dollar.

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Reading Time: 2 minutes

China and Singapore have agreed to allow direct trading between each other’s currency, Singapore’s central bank said on October 22.

Reading Time: 2 minutes

renminbi_countChina and Singapore have agreed to allow direct trading between each other’s currency, Singapore’s central bank said on October 22.

The move, along with other agreements on financial cooperation, is expected to bolster Singapore’s status as a leading offshore trading center for the Chinese yuan, officially called the renminbi (RMB).

“China and Singapore will introduce direct currency trading between the Chinese yuan and Singapore dollar,” the Monetary Authority of Singapore (MAS) said in a statement, adding that details will be announced separately.

China will also grant Singapore-based investors a 50-billion-yuan ($8.2 billion) investment quota under its Renminbi Qualified Foreign Institutional Investor programme, MAS said. This would allow investors based in the city-state to use the yuan to invest in Chinese stocks and bonds.

The programme “will help to diversify the base of investors in China’s capital markets and promote adoption of the RMB for investment”, MAS said.

Chinese institutional investors will also be allowed to use the yuan to invest in Singapore’s capital markets. In addition, new measures are being studied to allow cross-border flows of RMB between Singapore and Suzhou Industrial Park as well as Tianjin Eco City.

Relevant agencies in Singapore and China are also in discussions to facilitate China-incorporated companies, which have received regulatory approval to list directly in Singapore.

“The new initiatives will further promote the international use of the renminbi through Singapore,” the MAS said.

China’s rise as the world’s second biggest economy has seen the yuan take on a bigger role in international financial markets. Britain last week said that direct trading between the yuan and the British pound will be allowed. China also has similar direct trading arrangements for the yuan with the US dollar, the Japanese yen and the Australian dollar.

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