China, Singapore start direct currency trading

China Foreign Exchange Trading System (CFETS) announced on Monday it will carry out direct trading of the Chinese yuan against the Singapore dollar beginning Tuesday.

The move aims to boost bilateral trade and investment, facilitate the use of the two currencies in trade and investment settlement and reduce exchange costs for market players, the CFETS said in a statement on its website.

China's interbank foreign exchange market will kick off direct trading between the Chinese yuan and the Singapore dollar via the spot, forward and swap contracts, according to the CFETS.

The announcement followed the direct trading of the yuan against the euro, the British pound, the Japanese yen and the New Zealand dollar amid the country's efforts to internationalize the Chinese currency.