KUALA LUMPUR - More than ten Malaysian financial institutions, including several major banks in the country, have signed up the Renminbi Settlement Service, Bank of China Malaysia said in a statement released on Wednesday.

The 11 financial institutions that signed up the newly started service include Maybank, CIMB Bank, Public Bank, Hong Leong Bank, RHB Bank, Alliance Bank Malaysia, Bank Islam Malaysia, Bank Muamalat Malaysia and AmBank as well as two investment banks, Hong Leong Investment Bank and OSK Investment Bank.

Bank Negara, the central bank of Malaysia, announced earlier that Renminbi Settlement Service will be included in its Real-time Electronic Transfer of Funds and Settlement System ( RENTAS) from March 21, a move which it said would provide a natural hedge against the fluctuations and volatility of other currencies while eliminate settlement risk for Renminbi transactions.

Meanwhile, Bank of China Malaysia was appointed as the onshore settlement institution of the Renminbi Settlement Services.

Zheng Jingbo, Chief Executive Officer of Bank of China Malaysia, said on a seminar earlier this month that renminbi would be more widely used in the region, as the bilateral trade between China and Malaysia has been booming in recent years.

Mohd Suhail Amar Suresh, Managing Director of Malaysian Electronic Clearing Corporation that runs the service, said the milestone would boost the development of foreign exchange market in Malaysia.