HSBC has received regulatory approval to be one of the first market makers for direct onshore trading of the renminbi and the Singapore dollar (SGD) in China’s interbank foreign exchange market. The bank will participate in the trading when it starts.

 

Guy Harvey-Samuel, group general manager and CEO for Singapore at HSBC, said: “We welcome this latest move in renminbi internationalization that will encourage more trade denominated in renminbi in the region and open up business opportunities for Singapore corporates with China. It will also present cost savings to our customers through direct currency conversion and hedging on FX risks.”

 

Ryan Song, head of markets for China at HSBC, added: “Direct trading between the renminbi and Singapore dollar reflects the acceleration of renminbi internationalization, as well as renminbi’s growing prominence in global currency markets. It will also support the growing demand for the currency in Southeast Asia, where Singapore serves as a regional renminbi gateway.”