The Asian jurisdictions agreed further moves to boost use of the renminbi.

China has taken a further step to boost international use of its renminbi currency – and Singapore has acted to win more of this business – with a series of bilateral initiatives between the nations agreed yesterday.

The countries agreed on three steps:

First, China and Singapore agreed to extend to Chongqing Municipality the same cross-border renminbi initiatives that currently exist with respect to Suzhou and Tianjin. This means, for example, that Singapore-based banks will be allowed to lend renminbi to companies in Chongqing, and Chongqing-based companies may issue renminbi bonds in Singapore and fully repatriate the proceeds.

Second, Singapore’s quota under the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme will be doubled from RMB50 billion ($7.86 billion) to RMB100 billion. This is in response to the strong interest from Singapore-based asset managers and investors to invest in China.

And third, the Monetary Authority of Singapore and the People’s Bank of China agreed to renew and enhance the bilateral currency swap arrangement (BCSA) established between the two central banks. The existing PBC-MAS BCSA was signed in March 2013 and is due to expire in March 2016.