Bank Negara Malaysia, the Malaysian central bank, has opened a representative office in Beijing, as part of efforts to boost bilateral ties between China and Malaysia.
[tag|Bank Negara Malaysia|]Bank Negara Malaysia[/tag], the Malaysian central bank, has opened a representative office in Beijing, as part of efforts to boost bilateral ties between China and Malaysia.
The Beijing office is the third overseas representative branch by the bank, complementing its offices in London and New York. In a statement BNM said it serves as an "important liaison point with China's regulators and financial market participants."
In line with the launch, BNM introduced the Renminbi liquidity facility to licenced onshore banks that aim to enhance RMB liquidity in the domestic market. The RLF arises from the currency swap arrangement between BNM and People's Bank of China, the Chinese central bank, that was renewed on 8 February 2012.
A non-resident financial institution that meets the prudential requirements is also now allowed to offer Ringgit trade financing in collaboration with a licenced offshore bank. A memorandum of agreement has also been signed to establish a cross-border collateral arrangement between BNM and PBC. BNM had previously signed similar deals with the Monetary Authority of Singapore and the Bank of Thailand.