|Currencies trade, investment quota boost offshore yuan in Singapore
China and Singapore have agreed to allow direct trading of the currencies, Singapore's central bank announced.
The move, along with other agreements on financial cooperation, is expected to bolster Singapore's status as a leading offshore trading center for the yuan.
“China and Singapore will introduce direct currency trading between the Chinese yuan and Singapore dollar,'' the Monetary Authority of Singapore said in a statement, adding that details will be announced separately.
The statement was issued after a meeting between senior officials from both countries led by Singapore Deputy Prime Minister Teo Chee Hean and visiting Chinese Vice Premier Zhang Gaoli.
China will also grant Singapore-based investors a 50 billion yuan investment quota under its Renminbi Qualified Foreign Institutional Investor program, MAS said.
This would allow investors from the island to use the yuan to invest in Chinese stocks and bonds.
Chinese institutional investors will also be allowed to use the yuan to invest in Singapore's capital markets.
“The new initiatives will further promote the international use of the renminbi through Singapore,'' the MAS said.—AFP