Singapore grows as offshore yuan hub

yuan renminbiThe total amount of yuan cleared in Singapore from end May to end December 2013 amounted to 2.6 trillion yuan (around $430 billion), latest figures from ICBC Singapore, which was appointment in May 2013 as the sole yuan clearing bank in Singapore, show.

Singapore’s yuan deposits stand at 172 billion yuan ($28.43 billion) as of October 2013, according to latest data from the Monetary Authority of Singapore. That is a 70 per cent jump over a period of ten months.

Over roughly the same period, banks like Standard Chartered said it has seen a doubling of its yuan-denominated trade financing business as more companies, especially those with links to China, switch to billing and receiving payments in yuan.

Over the past year, the Chinese government has been taking steps to increase the use of the yuan globally. The central bank raised its daily fixing rate to a near record high in 2013, allowing the yuan to appreciate and hit record highs against the US dollar.

In Singapore, some of these steps include an offshore yuan clearing bank in May, a doubling of the currency swap facility between the two countries to 300 billion yuan ($49.57 billion), and a 50 billion yuan ($8.26 billion) quota for financial institutions in Singapore, under the Renminbi Qualified Foreign Institutional Investor scheme.

The agreement was reached in October 2013, making Singapore only the third offshore center after Hong Kong and London to be allowed to use the yuan to trade in Chinese stocks and bonds. The yuan broke into the ranks of the top ten most traded currencies globally in 2013.



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The total amount of yuan cleared in Singapore from end May to end December 2013 amounted to 2.6 trillion yuan (around $430 billion), latest figures from ICBC Singapore, which was appointment in May 2013 as the sole yuan clearing bank in Singapore, show. Singapore's yuan deposits stand at 172 billion yuan ($28.43 billion) as of October 2013, according to latest data from the Monetary Authority of Singapore. That is a 70 per cent jump over a period of ten months. Over roughly the same period, banks like Standard Chartered said it has seen a doubling of its yuan-denominated trade financing business...

yuan renminbiThe total amount of yuan cleared in Singapore from end May to end December 2013 amounted to 2.6 trillion yuan (around $430 billion), latest figures from ICBC Singapore, which was appointment in May 2013 as the sole yuan clearing bank in Singapore, show.

Singapore’s yuan deposits stand at 172 billion yuan ($28.43 billion) as of October 2013, according to latest data from the Monetary Authority of Singapore. That is a 70 per cent jump over a period of ten months.

Over roughly the same period, banks like Standard Chartered said it has seen a doubling of its yuan-denominated trade financing business as more companies, especially those with links to China, switch to billing and receiving payments in yuan.

Over the past year, the Chinese government has been taking steps to increase the use of the yuan globally. The central bank raised its daily fixing rate to a near record high in 2013, allowing the yuan to appreciate and hit record highs against the US dollar.

In Singapore, some of these steps include an offshore yuan clearing bank in May, a doubling of the currency swap facility between the two countries to 300 billion yuan ($49.57 billion), and a 50 billion yuan ($8.26 billion) quota for financial institutions in Singapore, under the Renminbi Qualified Foreign Institutional Investor scheme.

The agreement was reached in October 2013, making Singapore only the third offshore center after Hong Kong and London to be allowed to use the yuan to trade in Chinese stocks and bonds. The yuan broke into the ranks of the top ten most traded currencies globally in 2013.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Personal Info

Donation Total: $10.00

 

 

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