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Singapore's offshore market on the upswing

Yuan loans as at end-December are up 25% from March at 300b yuan

Published Thu, Mar 13, 2014 · 10:00 PM
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[SINGAPORE] Demand for offshore yuan in Singapore appears to continue unabated, amid optimism over greater trade flows between China and Asean and as financial markets in Asia - including forex derivatives - are expected to deepen.

But the yuan is not an international trade currency yet, said banking executives at an offshore-yuan conference yesterday, noting that most corporates are only engaging in yuan-denominated trade financing if the counterparties are Chinese.

The total value of yuan-denominated loans - which are mainly related to trade finance - in Singapore at the end of last year stood at over 300 billion yuan (S$62 billion), up by about 25 per cent from March last year, said Leong Sing Chiong, assistant managing director of the Monetary Authority of Singapore (MAS).

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