Bank Negara Malaysia is pleased to announce today the signing of Memorandum of Understanding (MoU) with the People's Bank of China (PBC) on the RMB clearing arrangements in Malaysia. In the MoU, both central banks agreed to coordinate and cooperate on the supervision and oversight of the RMB business, exchange of information, and to facilitate the continuous improvement and development of the arrangement.

The MoU signifies another important step in our continuous joint effort to build capabilities in the Malaysian financial system to better serve the ever rising bilateral trade, investment and financial flows between China and Malaysia. In supporting real economic activity, we recognise the designation of a RMB clearing bank is an important precondition for a pooling of RMB liquidity in the Malaysian financial system to enable financial institutions to achieve economies of scale to offer competitive RMB financing products to meet the demand of businesses and individuals in Malaysia as well as in ASEAN.