TAIPEI, Taiwan - DBS Bank China announced that it has completed its first renminbi (RMB) to Singapore dollar (SGD) spot deal as an official RMB-SGD market maker. The deal is also the first RMB-SGD deal in mainland China's interbank market since the launch of direct RMB-SGD trading this Tuesday, the bank said.
DBS China Chief Executive Officer Neil Ge said that the commencement of direct RMB-SGD trading had been keenly anticipated and the move should boost the appeal of offshore RMB in the region, as well as strengthen Singapore's position as a leading offshore RMB hub.
Kyle Tan, DBS China's head of trading said, "Trading activities have been robust on the debut of RMB-SGD direct trading. DBS China successfully completed the first RMB-SGD spot deal with a Chinese bank at the start of the trading day (Tuesday)."
"Chinese businesses and Singapore corporates based in China will now be able to better manage their foreign exchange risks as they can convert RMB into SGD directly instead of using the US dollar as an intermediary," said Tan.
Mainland authorities have allowed direct trading between RMB and SGD since Oct 28, making it easier for companies in Singapore to do business with their Chinese counterparts.
The SGD is currently on the China Foreign Exchange Trade System (CFETS) platform, which currently offers transactions between the RMB and 10 foreign currencies. The announcement came on Monday, Oct 27 after an agreement at the Joint Council for Bilateral Cooperation (JCBC) in Suzhou.
Previously, companies that wanted to convert a large amount of SGD to RMB or vice versa had to do so via an intermediate currency such as the US dollar.