According to data released last month by global transaction services organization SWIFT, Singapore accounted for 6.8 percent of all offshore renminbi-denominated currency payments last year. That put the small nation ahead of perennial #2 London, which only did 5.9 percent, but still trailing Hong Kong’s 72 percent by a very wide margin.
In Singapore Offshore yuan are primarily used by companies that do heavy business and trading with China or for cash management purposes by corporations.
“Over the last four to five years, we find the accelerator in Singapore would be regional treasury centers. There are far more regional treasury centers in Singapore taking care of not only ASEAN, but the entire Asia Pacific, and in some instances, they have a remit beyond Asia Pacific as well, to include some of South Asia,” said Global Head of the Global Corporates Group at Standard Chartered Bank Neil Daswani, reports Channel News Asia.
Singapore first offshore yuan clearing facility opened for business last May, by the end of December 2013, yuan deposits in the country had hit 200 billion.
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