April 2, the Industrial and Commercial Bank of China announced the official launch of the RMB clearing bank services in Singapore. With the beginning of the RMB liquidation service, the commercial banks in Singapore as well as other countries and regions will be able to handle RMB business directly by opening an account in ICBC Singapore Branch, which thereby significantly enhances the use efficiency of RMB in the global exchange program and effectively broadens the RMB funds in overseas channels. Previously, the People’s Bank of China on February 8, 2013 duly authorised ICBC Singapore Branch to serve as the clearing bank of renminbi business in Singapore, which is the first time the central bank of China selected the RMB clearing bank in a foreign country, marking another solid step forward of the internationalisation of the RMB.
In recent years, with Singapore’s rapid development of renminbi business market, many international banks and local banks have begun to try to launch RMB savings and deposit products. RMB deposit balance as of the end of June 2012 in Singapore had reached 60 billion yuan, second only to mainland China and Hong Kong region, the amount of cross-border RMB processing is after Hong Kong, ranked second in the offshore regions. March 7, 2013, the People’s Bank of China and the Monetary Authority of Singapore renewed a bilateral currency swap agreements, the swap scale is expanded to 300 billion yuan / S $ 60 billion. In addition, Singapore enjoyed the position as the only international financial center in the ASEAN region, the geographical and cultural advantages are very obvious, the scope of its RMB business services can cover the entire ASEAN region. The start of the RMB clearing bank services in Singapore can promote the use of the yuan in trade between China and ASEAN members which has important significance.