The Monetary Authority of Singapore (MAS) has approved Bank of China as a primary dealer in the Singapore government securities market, marking the first time a Chinese bank has received this status in the city-state.
The approval grants Bank of China the right to participate in the auction and secondary trading of Singapore government securities, a role traditionally held by major Western and regional banks.
The move signals a deepening of financial integration between Singapore and China, providing greater onshore liquidity for yuan-denominated transactions within Asia's key financial hub.
This development follows a broader strategy by Beijing to expand the international footprint of the renminbi.
Earlier this year, China's central bank designated Standard Bank and Industrial and Commercial Bank of China (ICBC) as the first renminbi clearing banks for Africa, establishing new settlement hubs for yuan-denominated trade across 19 countries.
The Singapore approval complements these efforts by strengthening the currency's infrastructure in established financial centers.