China Foreign Exchange Trade System has announced that China has begun direct trading between its currency and the Singaporean dollar.
China’s national foreign exchange market’s operator also said that such direct trading means the US dollar will not be used as an intermediary currency to calculate relevant rates.
China has allowed such transactions for the Japanese yen, Australian dollar, New Zealand dollar, sterling and euro since 2012.
According to a report from Bank of China, cross-border RMB settlement has been rising. The report surveyed 3,162 companies across 22 countries and regions. It showed that 26% of enterprises used renminbi in more than 15% of their transactions. A previous survey conducted last year found that only 16% of firms used renminbi.