Singapore hails itself as the fourth largest FX centre of the world. This has been complemented with the title of fourth centre to clear RMB trades. the People’s Bank of China (PBC) confirmed that the Industrial and Commercial Bank of China (ICBC) Singapore branch had been appointed as the clearing bank for Renminbi (RMB) in Singapore.
“The appointment of a RMB clearing bank in Singapore marks a key milestone in the growing financial cooperation between PBC and MAS, and will enable Singapore’s financial centre to play a useful role in facilitating greater use of the RMB for trade, investment and other economic activities in the region”, said Mr Ravi Menon, Managing Director, Monetary Authority of Singapore.
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China and Singapore have been strengthening ties in economic trade. Following the signing of the enhanced banking services commitments under the China–Singapore Free Trade Agreement (CSFTA) in July 2012, the Singapore branches of ICBC and Bank of China were granted Qualifying Full Bank privileges with effect from 5 October 2012. Out of these two Chinese banks, ICBC Singapore branch is authorised as the RMB clearing bank.
Outside mainland China, Hong Kong, Taiwan and Macau clear the Chinese currency.
Singapore likes the number four, it recently established its fourth financial exchange – ClearTrade. Adding to the list of Singapore Commodity Exchange (SICOM), Singapore Exchange (SGX) and Singapore Mercantile Exchange (SMX).