A team of staff of the Monetary Authority of Macao (AMCM) will go to Beijing to discuss with the People’s Bank of China (PBOC) about further widening of the scope of RMB business and promoting Macao to become a RMB settlement platform in respect of trade and other economic activities between China and Portuguese speaking countries. In addition, the issue of injecting RMB denominated assets into the fiscal reserve of the MSAR with a view to securing stable investment return will also be raised.
In mid-October, AMCM organized a delegation of our financial sector and visited Beijing and Shanghai. It raised relevant proposals to the Central Government and supervisory authroities concerned regarding further widening the scope of RMB business, promoting Macao to become a RMB settlement platform in respect of trade and other economic activities between China and Portuguese speaking countries, as well as the arrangement to facilitate the MSAR fiscal reserve to invest in RMB denominated assets. All these discussions had positive response and support from the authorities.
The PBOC indicated its fervent support to Macao in widening the scope of RMB business in accordance with market demand with a view to promoting the development of RMB business in Macao in a stable and orderly manner. In addition, the PBOC supported Macao to become a RMB settlement platform in respect of trade and other economic activities between China and Portuguese speaking countries, which would further promote its function as financial platform for trade and economic activities between China and Portuguese speaking countries. In regard to the issue of investment in Mainland bonds or deposits, the PBOC did not see any obstacles arising from existing policies, and would satisfy relevant requests in steps. Both sides were in agreement on the need to conduct further discussions relating to the practical operation, including amendments to settlement agreement so as to facilitate its early implementation.
AMCM disclosed that a bilateral meeting would be convened on the 16th of November. AMCM staff members, led by Mr. Wan Sin Long, Executive Director, accompanied by representatives of the Economic Affairs Department of the Central Liaison Office, the Guangzhou Regional Branch of the PBOC and Bank of China, Macau Branch, will conduct discussions on detailed arrangements relating to aforementioned issues with a view to implementating the relevant arrangements at an earlier date.
Mr. Teng Lin Seng, AMCM Chairman, has indicated that, in accordance with market development and requests raised by the practitioners, AMCM has been, in recent years, endeavouring assiduously to obtain policy support in widening the spectrum of RMB business in Macao, as well as enabling Macao to develop into a settlement platform for RMB business with Portuguese speaking countries. In addition, as for introducing an investment channel for secure and stable return on the impending MSAR fiscal reserve, AMCM has suggested to the PBOC to allow the MSAR fiscal reserve to invest in inter-bank bond and money markets. He hopes that through all these practical discussions, implementation of relevant arrangements can be realized at an earlier date.
