Tuesday, June 17, 2014

Singapore Launching Overnight Yuan Liquidity Facility in July

SINGAPORE — The Republic’s position as an offshore yuan hub is set to receive an additional boost with the launch of a facility to provide overnight liquidity as trade transactions using the Chinese currency rise.

The facility, offering up to 5 billion yuan (S$1 billion) in overnight funds on any given day to financial institutions in Singapore, will be launched on July 1, the Monetary Authority of Singapore (MAS) said yesterday.
Meanwhile, the People’s Bank of China Nanjing branch also announced yesterday that it would allow eligible companies and individuals in the Suzhou Industrial Park (SIP) to conduct cross-border yuan transactions with Singapore.
Singapore’s journey as an offshore yuan centre started in February last year when the People’s Bank of China appointed Industrial and Commercial Bank of China’s local branch here as the yuan clearing bank for Singapore.
Excerpt from Original Article

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