According to a comprehensive report by Worldway Migration: Xinhua News Agency, Singapore, September 22 — The inaugural Singapore RMB Internationalization Summit was held in Singapore on the 22nd. Participating experts engaged in in-depth discussions regarding China's macroeconomic trends, cross-border RMB policy directions, and the development of offshore RMB markets.
An Assistant Managing Director of the Monetary Authority of Singapore stated that RMB business is continuously developing in line with investor demand. Singapore has seen rapid growth in RMB deposits this year, and the People's Bank of China's further relaxation of offshore RMB policies aligns with the needs of investors. With the diversification of RMB-related products, channels, and services, the internationalization of the RMB will accelerate over the next five to ten years.
The Minister of State for Trade and Industry of Singapore also remarked in his address that, beyond financing and clearing, Singapore has been striving to establish a vibrant RMB capital market to promote the efficient use of RMB deposits and enhance Singapore's advantages as a center for asset and wealth management in the Asia-Pacific region.
Ma Jun, Chief Economist of the People's Bank of China, believes that for the internationalization of the RMB, efforts in the short term should focus on further facilitating cross-border trade settlement, establishing the Cross-Border Interbank Payment System (CIPS), promoting individual outbound direct investment, and encouraging the issuance of "Panda bonds." In the medium term, the convertibility of the RMB capital account should be gradually achieved, and in the long term, the diversification of the international monetary system should be promoted.
Singapore is one of the rapidly developing offshore RMB centers. In February of last year, the People's Bank of China authorized the Industrial and Commercial Bank of China (ICBC) Singapore Branch to act as the RMB clearing bank, making it the first designated RMB clearing bank outside of China. Since then, the Singapore offshore RMB market has developed rapidly. As of June this year, the balance of RMB deposits in Singapore reached 254 billion yuan. The monthly clearing volume has grown from an initial 100 billion yuan to approximately 3.5 trillion yuan currently. From January to August of this year, the cumulative RMB clearing volume has reached 310,000 transactions, totaling 21 trillion yuan.
Worldway Migration Editorial Team