MAS overnight yuan facility to back offshore renminbi market

Singapore

THE Monetary Authority of Singapore (MAS) yesterday said it will provide up to five billion yuan (S$1 billion) in overnight funds to support the growing offshore renminbi market here.

The People's Bank of China (PBOC) Nanjing branch also announced that corporates and individuals in the Suzhou Industrial Park (SIP) can conduct cross-border RMB transactions with Singapore.

MAS said of the facility to be launched on July 1: "Singapore's RMB market has grown rapidly, and the facility will further bolster market confidence by giving financial institutions the assurance that their short-term RMB funding needs will be met."

The facility complements the existing MAS RMB facility, which allows banks to borrow RMB funds on a t…