Singapore and China to Begin e-CNY Pilot, Explore Cross-Border Payment Linkage

Singapore and China have agreed to collaborate on a pilot programme that makes use of the e-CNY, China’s central financial institution digital forex (CBDC), for cross-border transactions. This programme is designed to ease funds for vacationers from each international locations throughout their abroad visits.

This pilot programme is a part of a collection of initiatives introduced following the nineteenth Joint Council for Bilateral Cooperation (JCBC) in Tianjin. These initiatives intention to increase digital finance and capital markets cooperation between the 2 nations.

Early-stage discussions are additionally underway between Singapore’s native banks and China’s UnionPay Worldwide to doubtlessly hyperlink Singapore’s PayNow and UnionPay. This might result in safer, handy, and cost-effective cross-border funds and remittances.

One other key improvement is the launch of the Trade Traded Funds (ETF) Product Hyperlink between the Singapore Trade (SGX) and the Shanghai Inventory Trade (SSE). This follows the success of an identical hyperlink established between SGX and the Shenzhen Inventory Trade (SZSE) in 2022. The ETF Product Hyperlink is predicted to boost collaboration between fund managers and enhance investor entry to various ETF merchandise in each markets.

Moreover, the SGX has signed a Memorandum of Understanding (MOU) with the Guangzhou Futures Trade (GFEX) to collaborate on data trade and joint analysis, notably in areas associated to inexperienced improvement. This settlement aligns with the broader targets of sustainable and inexperienced finance.

Additional constructing on the inexperienced finance collaboration, the China-Singapore Inexperienced Finance Process Pressure (GFTF) held its inaugural assembly in April 2023. Beneath the GFTF, initiatives are being developed to create a inexperienced hall for financing and to boost capability constructing in inexperienced and transition finance.

Leong Sing Chiong

Leong Sing Chiong, Deputy Managing Director (Markets and Growth), Financial Authority of Singapore (MAS) mentioned,

“It has been a fruitful yr of economic cooperation between Singapore and China.

 

MAS welcomes the brand new initiatives in digital finance and capital markets connectivity, as these will catalyse new monetary flows between our monetary centres, and deepen commerce and financial relations between our economies.”

Featured picture: The initiatives have been mentioned on the nineteenth Joint Council for Bilateral Cooperation (JCBC) in Tianjin, which was co-chaired by Singapore Deputy Prime Minister and Minister for Finance, Lawrence Wong, and the Individuals’s Republic of China Government Vice Premier of the State Council, Ding Xuexiang.