To adjust the average daily value data to equate to the same reporting convention used by the Bank for International Settlements, the gross values should be divided by two. 3  BIS Triennial Central Bank Survey, FX turnover in April 2013. 2  BIS central bankers’ speeches  20. So, what’s next? I expect markets to keep changing, and they will only change faster in the coming years. 21. As technology advances, and Asia providing the engine for global growth in the medium term, I see plenty of opportunities for CLS to put its strategic focus in the region. The HKMA welcomes the CLS’ efforts to put more new currencies and members into its orbit. 22. I look forward to seeing this happen sooner rather than later, and welcome opportunities for cooperation and knowledge sharing between us. This is all because of what I said earlier – that we shared a common vision, and a more widely participated system should mean even less settlement risks for market players. 23. I look forward to celebrating our silver anniversary in 2029. Thank you. BIS central bankers’ speeches  3
We are also noticing the inevitable trends, on the one hand, of greater use of the Hong Kong dollar on the Mainland and, on the other hand, of continuing financial liberalisation on the Mainland: this will, in the fullness of time, culminate in the RMB becoming freely convertible. The subject of dollarisation, whether the predominant currency is the Hong Kong dollar or the RMB, is a fascinating one. On a different dimension, in our attempt to enhance our status as an international financial centre, we have adopted the strategy of providing a financial infrastructure to facilitate the conduct of international financial intermediation activities in Hong Kong. This financial infrastructure is characterised by a platform on which financial activities can be transacted and settled real time in this time zone in the major currencies without, for example, Herstatt risk. We now have Real Time Gross Settlement systems for the US dollar and the euro, and of course the Hong Kong dollar. And the lead-time for the inclusion of another currency, such as the RMB, in our settlement platform, if that is considered appropriate, could be as little as six months. If this strategy is successful, it is not difficult to envisage an increasing proportion of the balance sheet of the banking system denominated in foreign currencies, and the greater use of, say, the US dollar in both the equity and debt markets.