The People’s Bank of China (PBOC) announced it aims to more strictly regulate cross-border yuan financing between banks and increase the global use of the yuan. This move stands out as part of Beijing’s efforts to reduce its dependence on the US dollar.
The People’s Bank of China (PBOC) announced it aims to more strictly regulate cross-border yuan financing between banks and increase the global use of the yuan.
The People’s Bank of China (PBOC) announced it aims to more strictly regulate cross-border … yuan financing between banks and increase the global use of the yuan (USD).
The People’s Bank of China (PBOC) announced it aims to more strictly regulate cross-border yuan financing between banks and increase the global use of the yuan (USD).
This move stands out as part of Beijing’s efforts to reduce its dependence on the US dollar.The People’s Bank of China (PBOC) announced it aims to reduce cross-border financing by implementing a counter-cyclical mechanism.
In addition, domestic banks will be encouraged to fully utilize their potential in international yuan financing, and a transaction volume ceiling will be set to allow for growth.The Central Bank explained the purpose of the regulations as “supporting cross-border yuan financing, developing the offshore yuan market, and strengthening the macro-prudential management of capital flows.”
For Chinese banks, cross-border yuan financing – including lending and bond repo agreements – is seen as a key channel for providing liquidity to offshore markets and increasing the international use of the yuan.
While these developments are underway, US Treasury Secretary Scott Bessent will hold talks with Chinese Vice Premier He Lifeng and other senior officials in Madrid next week on trade, economy, and national security.
