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Screenshot of a breaking news alert e-mail from Q2 2017
The Monetary Authority of Singapore (MAS) welcomed the directive issued today by the People’s Bank of China (PBC) Tianjin branch that will allow eligible corporates and individuals in the Sino-Singapore Tianjin Eco-city (SSTEC) to conduct cross-border Renminbi (RMB) transactions with financial institutions and corporates in Singapore. This initiative will facilitate greater use of RMB in the region and contribute to the growth of the offshore RMB market in Singapore.
PBC Tianjin’s initiative is similar to the cross-border RMB rules announced on 13 June 2014 by PBC Nanjing branch for the China-Singapore Suzhou Industrial Park. Both initiatives are the outcome of the broader agreement at the 10th Joint Council for Bilateral Cooperation meeting in October 2013 between Singapore and China on strengthening economic and financial co-operation.
PBC Tianjin’s directive will allow:
(i) banks in Singapore to lend RMB to corporates in the SSTEC;
(ii) corporates in the SSTEC to issue RMB bonds in Singapore;
(iii) equity investment funds in the SSTEC to make direct investments in Singapore and the ASEAN region; and
(iv) individuals in the SSTEC to make RMB remittances to settle current account and direct investment transactions.