China Financial Opening Push Advances Yuan Internationalisation

China has unveiled new measures to accelerate yuan internationalisation while maintaining vigilance against financial risks, signalling a continued commitment to opening its financial markets.

Speaking at the Lujiazui Forum in Shanghai, People’s Bank of China Governor Pan Gongsheng outlined a series of initiatives aimed at strengthening offshore yuan usage and liquidity management.

A key element of the yuan internationalisation strategy is the authorisation of six major state-owned banks to conduct offshore yuan transactions within Shanghai’s free-trade zone.

The central bank also launched a FIMA RMB Repo facility, enabling overseas central banks and sovereign wealth funds to access yuan liquidity by using high-quality Chinese bonds as collateral.

Pan said authorities would further support market liquidity by expanding overnight reverse repo operations and studying emergency liquidity tools for non-bank financial institutions during periods of stress.

The measures underscore Beijing’s efforts to promote wider global adoption of the yuan while balancing financial-market development with systemic-risk management.