Bank Negara Malaysia, Malaysia’s central bank, opened a representative office in Beijing on Monday to further expand financial and economic ties with China.

The Beijing office is Bank Negara Malaysia’s first presence in Asia, following its offices in London and New York.

“This is a reflection of the growing importance of China in the global economy and the international financial system and the very significant and longstanding financial and economic ties between Malaysia and China,” said Zeti Akhtar Aziz, governor of Bank Negara Malaysia.

Currently, two of China’s biggest banks - Bank of China and ICBC - have operations in Malaysia. Malaysia’s two largest banks - Maybank and CIMB - have also established branches in China.

Bank Negara Malaysia also announced a Memorandum of Understanding to establish a cross-border collateral arrangement with the People’s Bank of China.

The CBCA will enable the use of each country’s currency in the form of securities or cash to obtain domestic liquidity in the other country.

The bank also announced the introduction of the renminbi liquidity facility to licensed onshore banks that aims to enhance renminbi liquidity in the domestic market. The RLF provides an additional avenue for licensed onshore banks to borrow or lend RMB with Bank Negara Malaysia.