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Investing.com -- The People’s Bank of China (PBOC) has announced its encouragement for state-owned enterprises to prioritize the use of yuan in payments and settlements during their overseas expansion.
This move is seen as an effort by the Chinese government to boost the internationalization of the yuan in the midst of growing global trade tensions.
In a notice published on its website, the PBOC also urged commercial banks in Shanghai to increase their cross-border credit offerings.
The goal is to reduce the yuan financing costs for companies and stimulate yuan-dominated imports and exports.
The central bank also expressed its intent to enhance the Cross-Border Interbank Payment System (CIPS).
The PBOC plans to explore and implement blockchain technology to provide secure and efficient settlement and clearing services for global trades, shipping, investment, and financing denominated in yuan.
In addition to these measures, the PBOC has pledged support for the Shanghai Gold Exchange in its collaboration with other overseas exchanges.
The aim is to extend the use of yuan benchmark prices in global mainstream markets.
This notice was jointly issued by the PBOC, the National Financial Regulatory Administration, the State Administration of Foreign Exchange, and the Shanghai municipal government.
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