FX.co ★ PBoC Pushes Yuan Use in Global Trade Amid Rising Tensions

The People's Bank of China (PBoC) is actively promoting the use of the yuan among state-owned enterprises for international payments and settlements. This initiative aims to increase the currency's international presence amid ongoing trade tensions. In collaboration with major financial regulators and the Shanghai government, the central bank issued a notice encouraging commercial banks in Shanghai to broaden their cross-border credit offerings. This move intends to reduce financing costs in yuan and stimulate imports and exports priced in the Chinese currency. The PBoC also plans to enhance the Cross-Border Interbank Payment System (CIPS), advance the adoption of blockchain technology for secure and efficient global settlement services, and support the Shanghai Gold Exchange's efforts to partner with international exchanges to promote the use of yuan benchmark prices in key global markets.