• News
  • Markets
news photo
PBOC sees growing global role for yuan

The People's Bank of China, [HK Corporate Registration]the central bank, plans to accelerate the launch of its international payment system, with the first phase of the rollout by the end of this year, according to a report on its website.

This system will be located in Shanghai, the central bank's former deputy governor Liu Shiyu said earlier, and will enable foreign banks to be part of the yuan clearing business.

The steps will also accelerate yuan's internationalization by creating a bigger and more diverse group of clearing banks, making the yuan clearing process cheaper, which is very important, said experts.

The central bank will encourage government departments to use the yuan as the main currency in statistics, settlements and in the management of foreign-related economic work.

In the report, the PBOC said China will continue to push for the yuan's inclusion in the International Monetary Fund's Special Drawing Rights basket, and encourage foreign central banks to include yuan assets in their forex reserves.

"We are considering removing the quotas for foreign institutional investors in the interbank bond market," it said.

The central bank also wants foreign institutions to issue yuan-denominated bonds in the onshore market, [Company Incorporation USA]and expand yuan lending in offshore market.

A research note from Standard Chartered Plc said that the yuan is likely to be "more freely used" by 2018.

"A 60 percent probability of success will be there for the yuan to join the SDR basket as an international foreign reserve," said the Standard Chartered note.


Hongkong Tel : +852-2537 7886 Fax : 2537 7780   Add : 21F, Lippo Centre Tower 2, 89 Queensway, Admiralty, HK
Beijing Tel : +86-10-5979 7566 Fax : 5885 7463 Shanghai Tel : +86-21-6252 4952 Fax : 6091 7720
Tianjin Tel : +86-022-5829 8755 Fax : 5867 5735 Nanjing Tel : +86-25-8467 1161 Fax : 8467 1194
Guangzhou Tel : +86-20-2208 2580 Fax : 2208 2579 Shenzhen Tel : +86-755-8270 1877 Fax : 8270 1875
Hangzhou Tel : +86-571-8788 6788 Fax : 8607 5868 Ningbo Tel : +86-574-8772 9255 Fax : 8772 9216
Dalian Tel : +86-411-8250 6091 Fax : 8250 6094 Qingdao Tel : +86-532-8090 2580 Fax : 8090 2590
Xiamen Tel : +86-592-3299 299 Fax : 3299 199 Fuzhou Tel : +86-591-8389 1762 Fax : 8389 1752