DBS Bank (China) Limited has completed its first RMB/SGD spot deal as an official RMB/SGD market maker.
The deal is also the first RMB/SGD deal in China's interbank market since the launch of direct RMB/SGD trading on Tuesday, the bank said.
Kyle Tan, DBS China's head of trading said: "Trading activities have been robust on the debut of RMB/SGD direct trading. DBS China has successfully completed the first RMB/SGD spot deal with a Chinese bank at the start of the trading day this morning.
"Chinese businesses and Singapore corporates based in China will now be able to better manage their FX risks as they can convert RMB into SGD directly instead of using the US dollar as an intermediary," said Mr Tan."
On Monday, China and Singapore announced the launch of direct trading of their two currencies which will lower costs and further boost economic links between the two nations.
China already has direct trading with several currencies - the euro, pound sterling, Japanese yen, Australian dollar, New Zealand dollar, Russian rouble and Malaysian ringgit - as it pushes the internationalisation of the yuan.