Bank Negara Malaysia (BNM), the central bank of Malaysia, has opened a new representative office in Beijing, China.

The facility is the first in Asia and third globally after London and New York.

Banks in China will be allowed to provide ringgit trade financing in China, BNM governor Zeti Akhtar Aziz said in her speech at the opening of the bank’s Beijing office.

The central bank of Malaysia and the People’s Bank of China have inked a Memorandum of Understanding to establish a cross-border collateral arrangement that will enable financial institutions access to the Malaysian central bank’s liquidity facilities.

Two Malaysia’s banks, Maybank and CIMB, operate in China while China-based Bank of China and ICBC have operations in Malaysia.