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Reuters
5 days ago
- Business
- Reuters
DBS sees rising demand for yuan settlements from Chinese exporters
SINGAPORE, Aug 13 (Reuters) - DBS Group ( opens new tab, Southeast Asia's largest lender by assets, is seeing growing interest from Chinese exporters to settle trades in renminbi (RMB), or yuan, particularly with counterparts in Latin America and the Middle East, a senior executive said. "Right now, you see the Chinese exporters, some are beginning to ask and say, I'm going to sell in RMB, please settle in RMB," said Han Kwee Juan, speaking to Reuters in his first media interview since becoming DBS's group head of institutional banking in January. "Is that a trend that will continue? I think that it's something that they will continue to ask for as they trade more with the rest of the world, outside of the U.S.," he said. The shift comes as decades of unwavering faith in the U.S. dollar's dominance in global trade and capital flows faces scrutiny. Major emerging market economies are stepping up efforts to trade in local currencies, underscoring efforts to reduce reliance on the dollar in the global financial system. However, Han said that most settlements outside of China remain "largely in dollars". The bank's subsidiary, DBS China, has been a member of China's Cross-Border Interbank Payment System (CIPS) since 2015. China launched CIPS in 2015 to promote the yuan's usage in international trade. It allows global banks to clear cross-border yuan transactions directly onshore, instead of through clearing banks in offshore yuan hubs. DBS's settlement flows through the CIPS clearing system grew 30% year-on-year in 2024, Han said, though he maintained that the shift toward more yuan-denominated settlements remains gradual. In a wide-ranging interview, Han spoke of how businesses are dealing with the uncertainty over Trump's tariffs and outlined DBS's growth strategy in the current economic environment. "One of the things that we have been growing this year is we have been growing our capability for FI clearing," he said. "We have been quite purposeful in terms of investment that we have made in the clearing capabilities." The bank is also looking to capitalise on its institutional banking business to drive its return on equity, which currently stands at 17%, Han said. Last week, DBS posted a quarterly profit that beat estimates, sending its shares to a record high. "By being able to work with the customers holistically, not just with lending, but also with advisory and as well as cash management, enables us to not only just look at lending or (net interest income) as a source of revenue, but really growing our fee-based revenues," Han said.
Yahoo
07-08-2025
- Business
- Yahoo
China has 'genius' stablecoin plan to challenge U.S.
China has 'genius' stablecoin plan to challenge U.S. originally appeared on TheStreet. On July 18, President Donald Trump signed the GENIUS Act into law. The first major crypto legislation to become a law, it regulates stablecoins pegged to the U.S. dollar. For those unfamiliar, a stablecoin is a type of cryptocurrency that strives to keep its value stable, in comparison to usually volatile cryptocurrencies like Bitcoin, by being pegged to a fiat currency or a commodity. Trump believes his latest move would encourage the global adoption of the USD-pegged stablecoins and hence cement the dominance of the American national currency in international trade. The president's enthusiasm is understandable, given that the USD's share in the trade payments has been eroding over the past few Financial Times reported in August 2024 that while the USD payments declined from around 80% in 2010 to 40% in 2024, the renminbi payments rose from nearly zilch in 2010 to around 55% in 2024. The renminbi or RMB is the national currency of China, the arch rival of the U.S. in trade. As the Trump administration attempts to recover the lost ground with USD-pegged stablecoins, China seems to be planning a similar move despite its skepticism around cryptocurrencies. On Aug. 6, Financial Times reported that China is planning to launch its first stablecoins pegged to the renminbi. Since the country exercises a crypto ban throughout the mainland, Hong Kong is the testing ground of the project. The region recently passed a law that lets licensed issuers launch stablecoins backed by any fiat currency. However, the authorities will permit only a 'handful' of licenses starting in 2026, the report added. How could it impact the dollar? Stablecoins may look like just another crypto token, but they're actually a powerful tool of monetary influence. When Tether issues new stablecoins, it backs them with reserves that include real-world U.S. dollar assets. As of June 30, Tether holds over $127 billion in U.S. Treasuries (including $105.5B direct and $21.3B indirect), making it one of the largest holders of American debt globally. That demand flows straight into U.S. financial markets. It's why Washington, through laws like the GENIUS Act, is embracing USD-pegged stablecoins. China's crypto dilemma China's dilemma is crystal clear: how to embrace the crypto economy amid the challenge of controlling its financial system. The FT report cited Rebecca Liao, CEO at the blockchain firm Saga, who remarked, 'This is not technology that can be centrally controlled... When they invest in this technology it will be taken to places that they do not like.'The Hong Kong Monetary Authority (HKMA), the region's central bank, has also underlined that stablecoins could be used in money laundering. The report said the bank will initially grant a license to only one of China's four dominant state-owned banks. Private players in China don't want to be left behind either. a prominent e-commerce company, is planning to launch a Hong Kong dollar-pegged stablecoin. The project is already in the pilot phase. Ant Group, an affiliate company of Jack Ma's Alibaba Group, is also eyeing stablecoin licenses in Hong Kong and Singapore. However, China has been slow to enter the stablecoin race, and it will take a few years for us to know if it will succeed in its quest for de-dollarization. China has 'genius' stablecoin plan to challenge U.S. first appeared on TheStreet on Aug 7, 2025 This story was originally reported by TheStreet on Aug 7, 2025, where it first appeared.
Reuters
17-07-2025
- Business
- Reuters
China's second-largest fund house launches world's first renminbi tokenised money fund
July 17 (Reuters) - Hong Kong arm of China's second-largest fund firm China Asset Management (ChinaAMC) on Thursday rolled out the world's first renminbi-denominated tokenised money fund. This is the first tokenised money market product giving exposure to renminbi-denominated assets, after rising demand for similar products based on U.S. dollar funds. Tokenisation turns traditional assets into digital tokens, enabling the creation of a digital central bank system that settles payments and securities trades faster and more cheaply by reducing manual checks. ChinaAMC Hong Kong also launched a tokenised U.S. dollar money market fund, calling it the first such offering in Asia. The fund firm in February rolled out a similar product based on the Hong Kong dollar. The Hong Kong unit expects demand for such funds to keep rising in the near future, as regulated on-chain money such as regulated stablecoins, tokenized deposits and central bank digital currencies become more widespread.
South China Morning Post
24-06-2025
- Business
- South China Morning Post
China's yuan set to benefit as central banks report doubts about US dollar
Central banks are showing more interest in the Chinese yuan as doubts grow about the future of the US dollar, but this shift is not enough to challenge the greenback's dominance in global reserves, according to a new survey. In its latest Global Public Investor poll released on Tuesday, the London-based Official Monetary and Financial Institutions Forum (OMFIF) said a net 14 per cent of reserve managers plan to increase their yuan exposure in the next two years, up sharply from the 2 per cent reported last year. 'The [US] dollar was the most in-demand currency in our survey last year, but there is now split sentiment … highlighting how geopolitics is directly feeding into doubts about the dollar,' said the think tank, which canvassed 75 of the world's central banks from March to May. According to the poll, 20 per cent of respondents expect to add to their US dollar holdings in the next two years, but a similar proportion is looking to move away from the currency. Diverging sentiment on the US dollar also extends to the banks' long-term strategies, with 25 per cent planning to increase their holdings over the next 10 years and 18 per cent expecting to reduce them. 'The clearest shift is towards the renminbi,' OMFIF said, adding that for the third consecutive year, 30 per cent or more of central banks expect to increase their yuan holdings over the next decade.
South China Morning Post
18-06-2025
- Business
- South China Morning Post
China will boost the yuan's global reach with new operations centre, PBOC says
China will set up an 'international operations centre' for the digital yuan to boost the global influence of the renminbi, People's Bank of China Governor Pan Gongsheng announced at the Lujiazui Forum in Shanghai on Wednesday. Advertisement The measure was among eight financial policies Pan announced during the opening of the annual finance-facing forum, which also included pledges that China would pilot a range of structural monetary policy tools in Shanghai. The policies come at a time when growing tensions with the United States over trade and technology issues have added urgency to China's attempts to expand overseas adoption of the yuan and accelerate the rise of Shanghai as a global financial hub. The trials will include refinancing schemes using credit-based relending for foreign trade enterprises, cross-border trade refinancing with rediscount support, and an expanded green finance programme. The latter will widen the scope of China's carbon reduction support tool to include transition finance and region-specific industries. 'We will actively support Shanghai in pioneering new structural tools, such as blockchain-based trade finance and innovation bonds,' Pan said. 'This includes supporting private equity firms in issuing tech innovation bonds and promoting the use of risk-sharing mechanisms in tech innovation bond issuance.' Advertisement China's central bank also announced plans to establish a trade reporting repository for the interbank market, aimed at consolidating and analysing high-frequency transaction data across sub-markets – including bonds, money markets, derivatives, gold and commercial paper. The system is designed to support financial institutions, macroeconomic policymaking and regulatory oversight.
