The Bank of China has started its clearing business in Kuala Lumpur, Malaysia. It is another step to boost bilateral trade and investment with the Chinese currency.
The program would enable the two countries to settle their business and investment activities in RMB instead of US dollars. Malaysia is China's biggest trading partner among ASEAN countries.
China's central bank appointed Bank of China to conduct the business in the Southeast Asian country in early January. The launch followed similar arrangements in China's Hong Kong, Macao, as well as foreign cities including Singapore, London and Frankfurt.
The RMB-clearing business in overseas markets is also deemed as a major tool in promoting the globalization of the RMB.