Bank Negara Malaysia has signed a memorandum of understanding (MoU) with the People's Bank of China (PBoC) on the renminbi clearing arrangements in Malaysia. Under this, both central banks agreed to coordinate and cooperate on the supervision and oversight of the renminbi business, exchange of information and to facilitate the continuous improvement and development of the arrangement.

Bank Negara says the MoU signifies another important step in its continuous joint effort to build capabilities in the Malaysian financial system to better serve the increasing bilateral trade, investment and financial flows between China and Malaysia.

In supporting real economic activity, Bank Negara says it recognizes the designation of a renminbi clearing bank is an important precondition for a pooling of renminbi liquidity in the Malaysian financial system to enable financial institutions to achieve economies of scale to offer competitive renminbi financing products to meet the demand of businesses and individuals in Malaysia as well as in Asean.