The People's Bank of China ( PBOC) will designate a Chinese bank in Singapore to undertake the clearing of Renminbi trade, Singapore's Senior Minister Goh Chok Tong has said.

"China has to, over time, internationalize the Renminbi. So we see a role for financial cooperation over here -- how Singapore can play a role as China internationalizes its Renminbi at its own pace," the Business Times quoted Goh as saying Tuesday.

"The Chinese authorities have decided to designate one of the approved banks to be the Renminbi clearing bank," Goh said after meeting PBOC or Chinese central bank governor Zhou Xiaochuan in Beijing on Monday, adding that Singapore has also agreed to provide the clearing bank status for the designated Chinese bank.

Currently several Chinese banks have opened branches in Singapore, and the Bank of China and the Industrial and Commercial Bank of China are by far the largest.

Goh said Singapore has "no ambition to try to rival Hong Kong" in terms of Renminbi clearing and that the designation of a clearing bank in Singapore would help facilitate trade between China and southeast Asian countries.