DBS Bank (DBSM.SI) has been appointed as the second renminbi (RMB) clearing bank in Singapore. The announcement was part of 27 agreements signed at an annual bilateral meeting held in Chongqing, China. DBS is Southeast Asia’s largest lender by assets, providing a range of financial services to individuals, small businesses, and large corporations across the region. As a leading financial institution, DBS plays a key role in facilitating economic growth and development in Southeast Asia.
The Monetary Authority of Singapore (MAS) stated that DBS’s appointment would support the expansion of the offshore RMB market in Singapore. It will also facilitate the use of RMB for trade, investment and other economic activities, aligning with regional needs. DBS stated that the appointment would enable the bank to offer more comprehensive and competitive RMB solutions as clients seek to diversify their currency risks.
In a separate agreement, the Singapore branches of ICBC and Bank of China will launch a pilot programme allowing Singaporean travellers to open and top up digital RMB wallets for merchant payments in China by the end of the year. Additionally, both countries agreed to commence an over-the-counter bond market arrangement. This will enable designated banks in Singapore to provide institutional investors with access to selected fixed income products on the China Interbank Bond Market, according to MAS.
These agreements come amid a broader push from China to promote cross-border RMB settlement and financial services. Interest in RMB settlements has been growing, particularly among Chinese exporters trading with Latin America and the Middle East, according to a senior DBS executive in August.
