Real-time fund transfers in Hong Kong Dollars between banks in Macau and Hong Kong have taken effect thanks to a new arrangement, the local financial watchdog announced recently.
According to the Monetary Authority of Macao (AMCM), the new arrangement was the fruit of negotiations with its Hong Kong counterpart, the Hong Kong Monetary Authority (HKMA). It will be helpful to the connections of financial markets in both places. It is also practical to the emergence of the Greater Bay Area, the AMCM added.
The real-time fund settlement service is realized by the Hong Kong Dollar Real Time Gross Settlement (HKD RTGS) system, which is also known as Hong Kong Dollar Clearing House Automated Transfer System (CHATS).
In October 2020, the AMCM recapped, Macau participated in the HKD RTGS system to facilitate topical transactions in Macau. Since then, the system has handled nearly HKD700 billion’s worth of transactions.
Later, the AMCM tasked the HKMA with mutually fostering the interconnectivity of the HKD RTGS systems in both jurisdictions, which was eventually achieved in late October this year.
In the announcement, the AMCM did not expressly mention whether fund transfers originated in Hong Kong would be accommodated.
Introduced by the HKMA in 1996, the RTGS system enables safe and efficient settlement of interbank payments denominated in the Hong Kong dollar.
