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Chinese central bank and its Hong Kong counterpart on Monday entered into an agreement to ease some restriction on renminbi transfers between banks and companies in Hong Kong. Accordingly, the usage of the currency, otherwise known as the yuan, outside China is set to increase.
The supplementary Memorandum of Co-operation was signed by Hu Xiaolian, deputy governor of the People's Bank of China and Hong Kong Monetary Authority's chief executive Norman Chan. With the expansion of the renminbi trade settlement scheme, the HKMA and the PBoC will strengthen co-operation and further promote Hong Kong's status and role as a renminbi market platform in the process of developing renminbi business outside the Mainland.
Chan said, "Following the revision of the Settlement Agreement, there will no longer be restrictions on banks in Hong Kong in establishing renminbi accounts for and providing related services to financial institutions; and individuals and corporations will be able to conduct renminbi payments and transfers through the banks."
Elsewhere, China's banking regulator signed a memorandum of understanding with Indonesia's central bank on regulatory cooperation. The Bank Indonesia and the China Banking Regulatory Commission agreed to strengthen information exchange and improve financial sector supervision.
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