THE Sino-Singapore currency swap agreement can help establish the Republic as a renminbi centre for the region, said Monetary Authority of Singapore (MAS) deputy chairman Lim Hng Kiang yesterday.
'Currently, the Chinese are keen to internationalise the renminbi (yuan), and the main vehicle for doing so is through Hong Kong. By having this swap line, we are encouraging them to also provide the facility through Singapore.
'We can expect the Chinese to do so bilaterally with other South-east Asian countries, but to the extent that Singapore is the financial hub for South-east Asia, and the trade and investment facilitator for many of the deals and many of the operations arising in South-east Asia, then of course Singapore can aspire to be a renminbi centre for South-east Asia.'
Mr Lim, who is also Trade and Industry Minister, was responding to a question in Parliament from Nominated MP Teo Siong Seng.
MAS inked the $30 billion currency swap agreement with the People's Bank of China (PBOC) on July 24.
The agreement will allow MAS to borrow up to 150 billion yuan of the Chinese currency from the PBOC, in exchange for the equivalent in Singapore dollars.
The swap line is intended to promote bilateral trade and direct investment between the two countries. It will also facilitate the internationalisation of the yuan.
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