UOB subsidiaries now cross-currency dealers in China, Indonesia
This makes UOB the first Singapore bank to hold this status in both markets.
United Overseas Bank (UOB) announced today through a news release that its subsidiaries, UOB China and Indonesia, are now Appointed Cross-Currency Dealers (ACCD) for their respective countries.
UOB is the first Singaporean bank to hold this status in both countries, with UOB China being the only Singapore-based bank to be a Chinese yuan renminbi (CNY) and Indonesian rupiah (IDR) direct market maker.
The goal of this is to “promote the settlement of international good and services trade and direct investments in the local currencies of China and Indonesia.” These form a portion of the local currency settlement framework between PBC and the Bank Indonesia.
Both subsidiaries can also open IDR and CNY accounts. These accounts offer cross-currency exchange for both corporate and institutional clients.
Wee Ee Cheong, deputy chairman and CEO of UOB, focused on how this partnership would help in expanding UOB’s reach in the ASEAN region.
“Through our established network across ASEAN and China, UOB has been creating progressive solutions to support our clients’ growth, connecting businesses across the region. We see their increasing need for effective cross-border solutions, from financing and cash management to FX. By facilitating our clients’ use of local currencies for their regional operations, we will also help to drive greater trade and investment flows along the China-ASEAN corridors while contributing to intra-regional financial integration and cooperation.”
Both branches applied for ACCD licenses to address the demand for cross-border cross-currency solutions. UOB China, in particular, can offer two-way quotes on CNY against IDR. These clients have access to more competitive FX rates for greater efficiency.