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MAS welcomes cross-border yuan initiative for Tianjin Eco-city

The Monetary Authority of Singapore has welcomed the move by China's central bank to allow companies and individuals in Tianjin Eco-city to conduct cross-border yuan transactions with Singapore.

SINGAPORE: The Monetary Authority of Singapore (MAS) has welcomed the move by China's central bank to allow companies and individuals in Tianjin Eco-city to conduct cross-border yuan transactions with Singapore.

The directive issued by the People's Bank of China (PBC) Tianjin branch on Wednesday allows equity investment funds and individuals in the area to make overseas investments in yuan.

Eligible companies can also take up yuan loans from banks in Singapore.

Similarly, this means that banks in Singapore can lend and issue yuan-denominated bonds to corporates in Tianjin Eco-city.

This follows the announcement last month by the PBC Nanjing to allow eligible companies and individuals in the Suzhou Industrial Park to conduct cross-border yuan transactions with Singapore.

The Tianjin Eco-city was launched in 2007 as a joint project between the Chinese and Singapore governments to develop environmentally-friendly cities.

The cross-border yuan agreements are the outcome of a broader agreement between China and Singapore to strengthen economic ties through the facilitation of renminbi use in the region and growth of the offshore yuan market in Singapore. 

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