Singapore-Tianjin Eco-city cross-border RMB deals gets approved

Singapore banks can now lend using the yuan.

The Monetary Authority of Singapore (MAS) today welcomed a directive by the People’s Bank of China (PBC) that will allow cross-border yuan transactions between Singapore and the Sino-Singapore Tianjin Eco-city (SSTEC).

The directive will allow Singapore banks to lend RMB to corporates in the SSTEC, and will permit corporates in the SSTEC to issue RMB bonds in Singapore.

Under the new rule, equity investment funds in the SSTEC can also make direct investments in Singapore
and the ASEAN region, while individuals in the SSTEC can make RMB remittances to settle current account and direct investment transactions.

According to the MAS, “This initiative will facilitate greater use of RMB in the region and contribute to the growth of the offshore RMB market in Singapore.”