China, Singapore to start direct currency trading on Tuesday

Shanghai

CHINA will begin trading its yuan currency directly with the Singapore dollar on Tuesday, the national foreign exchange market operator said, in the latest move to promote international use of Beijing's unit.

The Singapore dollar will be added to the China Foreign Exchange Trade System's (CFETS) platform, which currently offers transactions between the yuan and 10 foreign currencies. The market operator will publish a daily parity between the yuan and the Singapore dollar based on quotes from market-makers and allow the currency to move 3 per cent on either side of the central midpoint, CFETS reported on its website.