Bank of Japan and Hong Kong Monetary Authority To Work On New Financial System
Bank of Japan informed that Japan and China officials are planning to connect their financial systems in order to settle transactions involving assets denominated in their respective currencies as soon as possible. That is, Bank of Japan and the Hong Kong Monetary Authority will work on real-time settlement between JGBs (Japanese government bonds) and Hong Kong dollars. Japanese financial firms will be able to get Hong Kong dollars with Japanese government bonds, without having to pay the cost of exchanging yen for the dollar, and Hong Kong financial institutions will have an opportunity to invest short-term excess funds. The project is scheduled to be concluded by spring of 2021.