It is the Singapore central bank’s third overseas representative office after its London and New York branches, and its first in Asia.
The authority said that the new office will help further strengthen bilateral collaboration between it and the central bank of China and other Chinese financial authorities.
Deputy Prime Minister of Singapore Tharman Shanmugaratnam, who is also Chairman of the MAS, said that he saw great value in establishing a physical presence in Beijing to facilitate future cooperation and regular interaction.
Zhou Xiaochuan, Governor of the PBOC, was the guest-of-honor at the MAS opening ceremony yesterday.
China and Singapore have been important partners to each other in economy and trade with cross border currency agreements facilitating the volume of trade and investment.
In April the PBOC signed an agreement with the country’s largest lender, ICBC, to authorise the bank’s Singapore branch as the clearing bank of renminbi (RMB) business in Singapore, in a move aimed to further boost the yuan’s global presence.
Currently five major Chinese banks have opened branches in Singapore, while three Singapore banks have established their branches in China. Singapore has now become the second biggest offshore centre in terms of RMB transaction after Hong Kong.
Other major financial centres such as Taiwan and London are also competing with each other to capitalize on the rapid growth of offshore yuan-denominated trades and financial products.
