Macao banks to start offering RMB services in October

Macao banks start RMB services

Macao banks will be allowed to start offering local personal Renminbi (RMB) services in October, according to a memorandum signed between the People's Bank of China (PBOC) and the Macao Monetary Authority on Wednesday.

Based on the memorandum signed by Li Ruogu, vice governor of PBOC and Anselmo Teng, president of the Macao Monetary Authority, local banks in Macao can provide deposit, remittance, exchange and credit card services of RMB.

The authorization will make Macao the second place after Hong Kong to offer an official channel for RMB notes circulating outside China's mainland.

Li Ruogu said after the inking of the memorandum that PBOC will treat Macao on an equal status with Hong Kong in the RMB dealing. All articles and regulations on the personal RMB services to be enacted in Macao are basically in common with those applied in Hong Kong, which was allowed to launch the services on Feb. 25 this year.

Li said that the economic environment in Hong Kong and Macao is different.

He warned the authorities to resort to strong monitoring measures against money laundering after the launch of the personal RMB services in Macao, whose economy is heavily dependent on the characteristic business of the gaming industry.

"The smooth business of the RMB services in Hong Kong has given us a confidence of expanding the RMB circulation to Macao," said Li.

The central bank official said that PBOC will take in applications for overtaking RMB clearing business in Macao, and through negotiations with the Macao Monetary Authority, PBOC will select a bank that should be experienced in handling the financial services both in the mainland and Macao to be the clearing bank for the RMB services in Macao.

Local banks in Macao willing to participate in the RMB services will need to clinch an agreement with the upcoming RMB clearing bank to be authorized by PBOC in launching the business, which is expected to take two months of time from now on.

Anselmo Teng, president of the Macao Monetary Authority said on Wednesday that the launch of the RMB services in Macao will be another favorable element making for the swift economic cooperation between the mainland and Macao following a series of preferential policies including the implementation of the Mainland/Macao Closer Economic Partnership Arrangement (CEPA), the mainland's opening of individual travels to Hong Kong and Macao and the signing of the Framework Agreement on Regional Cooperation in the Pan-Pearl River Delta.

The launch of the RMB services will bring convenience for personnel flows between the mainland and Macao, which is conducive in boosting Macao's tourism, said Teng.

Macao's Chief Executive Edmund Ho Hau Wah witnessed the signing ceremony of the memorandum on Wednesday.

Source: Xinhua