Singapore and the north China city of Tianjin are working together to boost the cross-border use of renminbi in payments for goods and services. In a move that follows approval from the central bank,the Tianjin Banking Association has inaugurated its Interim Measures on the Management of Business Innovation Pilot of Cross-border Renminbi between Tianjin and Singapore (No. 173 of the Tianjin Banking Association Office document No. 173 [2016]). This is designed as a framework for greater use of the currency that includes the use of proceeds from offshore bond offers. Singapore has been taking on a growing role in the offshore renminbi business and Tianjin,as an important north China port,has set its sights on playing a big role in the "One Belt,One Road" strategy that hopes to boost trade and investment ties with neighboring economies. Tianjin also has been designated as a focus of north China's regional development under the Beijing-Tianjin-Hebei development strategy. In order to assess the prospects of greater banking cooperation under this program,China Forex spoke to An Li,vice president of Huaxia Bank's Tianjin branch. The following Q & A examines that issue and what it could mean for the Tianjin banking sector.

Q: The People's Bank of China has approved a cross-border renminbi business pilot project in Tianjin. An earlier trial program has more recently been expanded to cover all of Tianjin and interim measures have been put in place by the local banking association. What new opportunities do you think this will usher in for the banking sector?

A: The new policy addresses the needs of renminbi internationalization and it is an indication of growing financial cooperation between Tianjin and Singapore.

Singapore is already a significant offshore renminbi center,and this new project will make a big contribution to renminbi internationalization. More and more exporters from ASEAN countries are accepting renminbi letters of credit,and the Chinese currency is playing an increasingly important role in foreign exchange settlements in ASEAN countries.