Expanding RMB usage, trading infrastructure central to Sino-Portuguese economic bonds

The expanded use of China’s RMB currency and strengthened financial trading infrastructure will be central to visions of taking economic bonds between China and Portuguese-speaking nations to the next level. The Macau Association of Banks is working to solidify financial cooperation between the mainland and Portuguese-speaking countries, according to president Ip Sio Kai.

“Macau has always been exemplary in terms of the cultural exchanges between the East and West,” Ip said in his opening remarks at the Greater Bay Area Investment Forum of the 2nd cooperation conference between the commercial Banks of Macau and Portuguese-speaking countries.

Ip highlighted Macau’s unique position in facilitating trade and commerce between China and Portugal, noting that the city has been a “very important medium connecting the two sides,” even after its return to the motherland.

“Through the ‘One country, two systems’ and a low tax regime, we have many advantages in this regard,” Ip said.

The association has been working closely with the Macau government improve financial cooperation, particularly in the development of RMB clearance. In August 2015, Macau became one of the first cities approved by the Central People’s Bank to establish RMB clearance banks. The association has since established relations with 17 banks from 17 Portuguese-speaking countries.

“To further our cooperation, in 2019, the Macau Association of Banks signed an initiative with various Portuguese-speaking countries, including Guinea-Bissau, Mozambique, Portugal, and Santo Domingo to build a solid foundation for cooperation,” Ip said.

During the 6th Ministerial Conference of the Macau Forum in April this year, Li Hongzhong, member of the Politburo and vice-chairman of the Chinese People’s Political Consultative Conference (CPPCC), proposed several measures to support Macau’s role as a financial bridge between China and Portuguese-speaking countries, including the development of a RMB settlement platform for the international bond market.

“In the future, we are looking forward to further collaborations amongst our banks and their associations to work with the Macau government to continue to build the one platform of Macau. This will allow us to take advantage of our position in the area and in national development so that we can strengthen our ties with the financial institutions of Portuguese-speaking countries,” Ip said. Victoria Chan