London - Singapore and Britain will step up their cooperation in the development of the offshore yuan market with the launch of a forum next year.

Private-sector players from both countries will hold the forum in Singapore early next year.

The forum is part of a series of initiatives aimed at enhancing bilateral financial and economic relations following a visit here in February by British Chancellor of the Exchequer George Osborne.

Offshore yuan trade has been identified by both financial centres as a crucial area of growth.

Global transaction services organisation Swift placed the yuan as the seventh most traded currency in the world this year.

Financial institutions here welcomed the chance to discuss how they can work together to further develop the offshore yuan market.

Standard Chartered Singapore head of transaction banking Motasim Iqbal saidSingapore and Britain's efforts are not only mutually beneficial to both sides in their push to be strong offshore yuan centres, but will also help to enhance the fungibility of the yuan globally.

HSBC Singapore chief executive Guy Harvey-Samuel said: "This inaugural forum presents a unique platform for Singapore and UK companies to... capitalise on the growing cross-border opportunities opened up through international use of the yuan."

The Association of Banks in Singapore said in a statement it is pleased to host the event here: "Banks from London and Singapore will come together to discuss and raise awareness on the use of the yuan as the currency for underlying transactions in the trade and capital markets in both countries."