China central bank urges state-owned businesses to prioritize yuan in overseas expansion to boost internationalization.

From Yahoo Finance: 2025-04-21 05:56:00

China’s central bank is urging state-owned enterprises to prioritize using the yuan for payment and settlement in overseas expansion efforts. This move is aimed at accelerating the internationalization of the yuan amid escalating global trade tensions, especially with the US imposing reciprocal tariffs. The People’s Bank of China is encouraging commercial banks in Shanghai to expand cross-border credit to lower financing costs and promote yuan-dominated imports and exports. Additionally, the central bank plans to strengthen the Cross-Border Interbank Payment System (CIPS), explore blockchain technology applications, and support the Shanghai Gold Exchange to expand yuan benchmark prices globally. The PBOC issued the notice in collaboration with other financial regulatory bodies and the Shanghai municipal government.



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