HKAB welcomes the signing of MoU by Bank Indonesia, Hong Kong Monetary Authority and People’s Bank of China to promote bilateral transactions in Indonesian Rupiah and offshore Chinese Renminbi between Indonesia and Hong Kong
The Hong Kong Association of Banks (“HKAB”) welcomes the signing of a Memorandum of Understanding (“MoU”) by Bank Indonesia, the Hong Kong Monetary Authority (“HKMA”), and the People’s Bank of China to establish a cooperation framework that promotes the use of the Indonesian rupiah and offshore Chinese Renminbi(“CNH”) (bilateral currencies) in transactions between Indonesia and Hong Kong.
Sun Yu, Chairman of the HKAB, and Vice Chairman and Chief Executive of Bank of China (Hong Kong), said, “The cooperation framework will significantly enhance the efficiency of foreign exchange pricing and transactions between the CNH and regional currencies, marking another important milestone in the international use of Renminbi. It is also of great significance in further consolidating and enhancing Hong Kong’s position as an international financial centre and a global hub for offshore Renminbi business. Hong Kong is home to the world’s deepest offshore Renminbi liquidity pool and a leading offshore Renminbi foreign exchange market. Supported by strong trade, economic and investment ties with Indonesia, along with the Hong Kong banking sector’s robust market-making and cross-border service capabilities, Hong Kong will provide efficient local currency services for enterprises in both markets. Under the guidance of the HKMA, the HKAB will work closely with the Hong Kong banking sector to actively participate in the framework and advance the necessary preparations, further deepening financial connectivity between Hong Kong and Southeast Asia.”