DBS applies to tap $30b currency swap with China

By JASMINE NG


DBS Bank announced on Wednesday that it has applied to the Monetary Authority of Singapore (MAS) to tap the bilateral currency swap agreement established between the central banks of Singapore and China.

Under an agreement signed in July last year, the MAS and the People's Bank of China (PBOC) had established a S$30 billion bilateral currency swap arrangement to promote bilateral trade and direct investments between the two countries.

By tapping the swap line facility, DBS is able to provide customers with the option of settling their trades in yuan, instead of in more conventional US$ terms.

'The swap facility presents interesting opportunities to the market, providing an alternative source of RMB funding outside China, which will boost two-way trade flows and investments between Singapore and China,' manager of DBS Singapore, Sim S. Lim said.