Published on: 29-Mar-2016
Nanyang Technological University (NTU Singapore) is partnering China’s central bank, the People’s Bank of China (PBOC), to launch a new research centre to study the demand and use of the Renminbi (RMB) in international markets.
The joint centre will leverage the expertise in finance from NTU’s Nanyang Business School to train policymakers and finance executives in RMB policies and internationalisation process.
As an internationalised currency, the RMB will be able to offer a host of benefits to consumers, traders, banks, and businesses.
Central banks around the world will also be more willing to adopt the RMB as a reserve currency and it can be a favoured currency for international transactions, joining the league of major world currencies such as the US dollar and the Euro.
Consumers will have more opportunities to lower transaction costs by not paying a foreign exchange fee, and by trading in the same currency, businesses can also mitigate exchange rate risks.
The new Centre for RMB Internationalisation Studies (CRIS) was launched at the Ritz Carlton, Beijing this morning. His Excellency, Mr Stanley Loh, Ambassador of the Republic of Singapore to the People’s Republic of China graced the event.
Professor Ravi Kumar, Dean of Nanyang Business School, said, “The renminbi is now the world’s second most used currency for trade and services. Its road to internationalisation which began in the late 2000s has gained great momentum.
“Nanyang Business School is delighted to be part of this exciting journey with our valued partners and supporters. As one of the foremost business schools in Asia, we want to play a leadership role in training and preparing leaders on the tremendous impact an internationalised RMB has on world economy.”
Also present at the launch ceremony were Ms Xing Yujing, Director General of Monetary Policy Department, People’s Bank of China; Mr Eric Lian, President and CEO of UOB China; Ms Chang Su Hoong, Chief Representative, Monetary Authority of Singapore’s Beijing Representative Office, and Mr Gu Shu, Senior Executive Vice President of Industrial and Commercial Bank of China (ICBC) Singapore.
The new centre is supported by the Industrial and Commercial Bank of China (ICBC) Singapore, the United Overseas Bank (UOB), and the Monetary Authority of Singapore, who will oversee the development of a stable and efficient RMB currency infrastructure.
Mr Zhang Weiwu, General Manager of Industrial and Commercial Bank of China (ICBC) Singapore Branch, said, “As the largest commercial bank in China as well as the RMB Clearing Bank in Singapore, ICBC plays an important role in RMB internationalisation and the development of the Singapore RMB offshore centre. ICBC Singapore is committed to providing one-stop RMB business solutions and services to our clients. We believe the general trend of RMB internationalisation, the opening up of China's capital market as well as the potential of cross-border RMB business remain unchanged. We remain optimistic about the future of RMB internationalisation and the development of Singapore's offshore RMB market.”
Mr Eric Lian, President and CEO of UOB (China), said, “China’s increasing economic influence has propelled the adoption of RMB in the areas of trade settlement, financing and corporate deposits. UOB is at the forefront of offering RMB advisory and solutions to our clients – from both China and Southeast Asia – as they invest and expand their businesses along the Belt and Road trade routes. The research and knowledge that CRIS provides will complement UOB’s suite of RMB services as we help companies from across our network take advantage of using the Chinese currency for international trade and investments.”
Located at NTU, the centre will be jointly managed by the PBOC’s China Centre for Financial Training and the Nanyang Business School.
Besides assessing RMB’s impact on the world economy and trade, the new centre will also provide thought leadership on RMB through conferences and forums for top finance leaders and policymakers.
It will share research papers in public domains and maintain a comprehensive economic and finance database for research and academic use.
Associate Professor Lee Boon Keng, Director of the new centre, said, “Singapore, being the only country in the world offering round-the-clock RMB clearing service and a key RMB offshore settlement centre, is an ideal location to set up the Centre for RMB Internationalisation Studies. I am confident that CRIS will become a knowledge centre for governments, businesses, financial institutions and academia to gain insights into the significance of RMB as an international currency.”
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Nur Amin Shah (Mr)
Assistant Manager (Media Relations)
Corporate Communications Office
Nanyang Technological University
About Nanyang Technological University, Singapore
A research-intensive public university, Nanyang Technological University, Singapore (NTU Singapore) has 33,000 undergraduate and postgraduate students in the colleges of Engineering, Business, Science, Humanities, Arts, & Social Sciences, and its Interdisciplinary Graduate School. It has a joint medical school, the Lee Kong Chian School of Medicine, set up with Imperial College London.
NTU Singapore is also home to world-class autonomous institutes – the National Institute of Education, S Rajaratnam School of International Studies, Earth Observatory of Singapore, and Singapore Centre on Environmental Life Sciences Engineering – and various leading research centres such as the Nanyang Environment & Water Research Institute (NEWRI), Energy Research Institute @ NTU (ERI@N) and the Institute on Asian Consumer Insight (ACI).
Ranked 13th in the world, NTU Singapore has also been ranked the world’s top young university for the last two years running. The University’s main campus has been named one of the Top 15 Most Beautiful in the World. NTU also has a campus in Novena, Singapore’s medical district.
For more information, visit www.ntu.edu.sg
About Nanyang Business School
Consistently ranked among the world’s premier business schools, Nanyang Business School (NBS) has been nurturing leaders for business and public service, advancing global management knowledge and practice for over 50 years. Being fully integrated into Nanyang Technological University, we draw on the strengths of one of Asia’s most comprehensive research-intensive universities to provide holistic, interdisciplinary business education. NBS believe that responsible and culturally sensitive leadership in business and government is crucial to securing a sustainable future for a globalised world. Through teaching and research, NBS grooms culturally intelligent leaders who pursue lasting success that seeks not only economic profit, but also the interests of the community and environment.
For more information, visit www.nbs.ntu.edu.sg
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