Hong Kong and Brunei Darussalam are interested in establishing a cross-border payment-versus-payment (PvP) link to minimise risks arising from foreign exchange transactions and enhance their operational efficiency in settling those transactions during Asian hours.
Recently the Hong Kong Monetary Authority (HKMA) and Bank Indonesia jointly launched a new cross-border payment-versus-payment (PvP) link between Hong Kong’s US Dollar Real Time Gross Settlement (RTGS) system and Indonesia’s Rupiah RTGS system
John Tsang Chun Wah, the Financial Secretary of Financial Services and the Treasury of the Government of Hong Kong (SAR) of the People’s Republic of China, in an interview yesterday said, “I have raised (the proposal) to establish a cross-border payment-versus-payment (link) between both sides during the meeting with Brunei’s Minister of Finance II, and the ministry is quite interested in the idea”.
He said, “The Brunei Ministry of Finance would be sending people to Hong Kong for further discussions on the cross-border payment-versus-payment link.”
He added that the cross-border payment-versus-payment link can minimise the risks of currency exchange on both sides, especially as there is an increase in business being done in mainland China, and Hong Kong has a good clearing platform for trade settlement in the denomination of RMB.
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