The Monetary Authority of Macau (AMCM) signed a management agreement in Beijing with the People’s Bank of China to invest in the interbank bond market in Mainland China.
The agreement makes it possible for the AMCM to apply its Reserve funds directly in the Mainland interbank market based on a quota of bonds denominated in Renminbi (RMB), to a maximum approved value of 10 billion.
The aim of this move, according to a statement from the Monetary Authority of Macao, is to implement, “appropriate diversification for its asset portfolio,” in the long term.
The Monetary Authority also said that “the move can broaden investment channels. Simultaneously, AMCM will be able to make use of the opportunity offered by the rise of the capital market of the Mainland, through the introduction of a series of stable and secure RMB financial products.”
Macau’s foreign reserves totalled an estimated US$15.6 billion in February of this year. (macauhub)