OREANDA-NEWS. October 07, 2013. Bank of China's Strategy Talk on RMB took place in Singapore. Present members were Duan Jielong, Chinese ambassador to Singapore; Tian Guoli, chairman of BOC; Teo Eng Cheong, CEO of International Enterprise Singapore; Leong Sing Chiong, assistant managing director of the Monetary Authority of Singapore; Magnus Bicker, CEO of Singapore Exchange Ltd. (SGX); Pierre Lorinet, CFO of Trafigura; besides, over 200 government officials, senior executives of enterprises and financial institutions as well as customer representatives from China, Singapore and the rest of Southeast Asia attended the Strategy Talk.

The RMB has the huge potential for becoming a key international currency and the potential is coming true, BOC Chairman Tian Guoli said at the conference. Now the RMB has been ranked among the ten most active trading currencies in the global foreign exchange market, with its trading status jumping to the 9th in the world from the 17th in 2010 and its average daily turnover trading volume increased 250 percent from three years ago. Overseas RMB capital reserves have soared to over 1 trillion yuan from approximately 10 billion yuan in 2010. Despite the astounding speed, internationalization of RMB has just begun. China's exports and imports accounted for 11.1 percent and 9.8 percent of the world's total imports and exports respectively in 2012, with ranking of 1st and 2nd, but the share of the RMB in the global trade settlement market was only 0.87 percent in the same period. Someone likened the RMB to a "sleeping currency", but it has waken up now and is gradually showing its vitality and vigor. As China has quickened its pace in financial reform fields such as interest rate liberation and convertibility of capital items, the RMB will have huge space for international development.

Tian noted, with the rise of an economy and the internationalization of its currency, the international monetary system will change significantly and the role of major financial centers will be reshuffled. However, Singapore has become one of the leading offshore RMB trading centers, showing the foresight and unique strategic vision of the Singaporean government. BOC firmly supports the development of the Singaporean RMB market and will take an active part in the process.

Tian said, BOC is the only global systematically important bank in emerging market economies as well as the bank with the largest scale of and strongest professional competence in cross-border RMB business. Since 2009, BOC's cumulative cross-border RMB business volume has topped 7 trillion yuan, far above the industry level. With a worldwide RMB clearing network and payment system, as well as a complete range of RMB deposit, loan, settlement, investment and trade products, BOC is now capable of providing all-round RMB services to customers worldwide.

Tian noted, BOC, closely tied to Singapore, has been operated in Singapore for 77 years, owns the QFB license, and is engaged in businesses such as commercial banking, investment banking, aircraft leasing and wealth management. BOC attaches great importance to the Singaporean RMB market and has orchestrated targeting products and services. BOC Singapore Branch has become one of Singapore's largest RMB business service providers and several of its products have stayed ahead in the market. The branch's RMB clearing volume amounted to 1.37 trillion yuan in the first eight months of this year, thus coming out on top in the market and keeping ahead in the industry in terms of clearing efficiency. In the future, BOC will continue enhancing its status and role of Singapore in BOC's global RMB operations.

During the conference, BOC released BOC Cross-border RMB index (CRI) for the first time in the world. The index was made from the dimension of currency circulation, comprehensively reflecting the activity level of RMB circulation and use in cross-border and overseas trade, and it serves as a practical guide for customers choosing cross-border RMB products and services.

Meanwhile, BOC signed memorandums of cooperation with SGX and the global bulk commodity trader Trafigura. Under the memorandums, BOC proposed to work with SGX to develop RMB products and services and extend respective operations in China and on SGX, thus making BOC Singapore Branch SGX's first Chinese-funded settlement bank.