Bank of China has recently provided around RMB 130 million in trade financing to a leading Singaporean commodities trader, drawing on dedicated funds under the Monetary Authority of Singapore (MAS) RMB Facility.

This transaction marks the first time BOC has drawn on RMB funds from MAS via the RMB Facility established under the China-Singapore bilateral currency swap agreement. The funds will be used to support the development of the real economy and represent a positive step forward in advancing the international use of RMB.

The MAS RMB Facility is an RMB lending scheme established by MAS on the basis of the China-Singapore bilateral currency swap agreement. Eligible borrowers may access RMB funds from MAS through this mechanism for purposes approved by the authority. Its core mandates are to facilitate China-Singapore bilateral trade, Singaporean investment in China ("trade purposes") and enhance stability in Singapore's offshore RMB market.

As a key participant and promoter of RMB's international use, BOC has, in recent years, leveraged its role as the main channel for cross-border RMB business to inject sustained financial momentum into China-Singapore economic and trade cooperation:

Supporting emerging sector cooperation

BOC has been active in multiple financial innovation initiatives, including Project Ubin, a central bank digital currency project led by MAS.

Expanding new cross-border RMB use scenarios 

As the pioneer of RMB business in Singapore with the most comprehensive product offering, BOC is a top player in cross-border RMB settlement and leads the Panda and Dim Sum Bond underwriting.

Building a China-Singapore business matchmaking platform 

For eight consecutive years, BOC has served as a financial services partner for Singaporean companies at the China International Import Expo, delivering tailored, end-to-end financial solutions to nearly 400 exhibitors and brokering over 100 bilateral cooperation agreements.

BOC will continue to leverage its global expertise and comprehensive services to drive financial innovation, develop new RMB international use scenarios, and make greater contributions to China-Singapore trade and China's high-level financial opening-up.