Currency swap bid

DBS Bank yesterday said it has applied to the Monetary Authority of Singapore to tap the currency swap agreement established between the central banks of China and Singapore to provide yuan financing to Singapore-based companies exporting to China.

By tapping the swap line facility, DBS is able to provide customers with the option of settling contracts in yuan, instead of in US dollars or other currencies.

This comes amid burgeoning trade and investment between China and the rest of Asia.

Under an agreement signed in July, the Monetary Authority of Singapore and the People's Bank of China had established a S$30 billion (US$24.3 billion) bilateral currency swap arrangement.

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