MAS and People's Bank of China sign MOU on RMB

PHOTO: MAS and People's Bank of China sign MOU on RMB

SINGAPORE - The Monetary Authority of Singapore (MAS) and the People's Bank of China (PBC) have signed a Memorandum of Understanding (MOU) on Renminbi (RMB) Business Cooperation.

Under the MOU, MAS and PBC will cooperate closely in reviewing the conduct of RMB businesses and clearing arrangements in Singapore.

The two central banks also agree to establish a regular dialogue to review RMB liquidity conditions and discuss issues concerning the stability of the RMB market, said the MAS in a press release.

PBC has also signed an RMB Clearing Agreement with the Industrial and Commercial Bank of China (ICBC) Singapore branch.

Following PBC's appointment of ICBC Singapore branch as the RMB clearing bank in Singapore on Feb 8, 2013, ICBC Singapore branch is now allowed to provide RMB clearing services to participating banks and their customers for the next five years.

These developments will facilitate the use of RMB for cross-border trade and other economic transactions and enhance access to RMB in the region. They reflect the strong financial services cooperation between Singapore and China.