Singapore is now able to clear business transactions in RMB. The Singapore branch of the Industrial and Commercial Bank of China has been assigned to run the clearance.

The move makes Singapore the first overseas regional financial centre with an RMB clearing bank. The country has seen a strong demand for financial securities denominated in RMB and the call for clearing trade transactions in RMB is on the rise.

Analysts say the move will largely increase the efficiency of business clearing and boost the development of its capital market.