Singapore, China will allow direct trading between currencies

Will strengthen Singapore's status as leading offshore RMB hub.

The Monetary Authority of Singapore said China will also grant Singapore-based investors a US$8.2 billion investment quota under its Renminbi Qualified Foreign Institutional Investor program. This will allow investors based in Singapore to use the renminbi to invest in Chinese stocks and bonds. The program will help to diversify the base of investors in China's capital markets and promote adoption of the RMB for investment. Chinese institutional investors will also be allowed to use the RMB to invest in Singapore's capital markets. Together, the new initiatives will further promote the international use of the renminbi through Singapore, MAS said.