China central bank urges state-owned businesses to prioritise yuan in overseas expansion
China's central bank said on Monday it was encouraging state-owned enterprises to prioritise yuan usage in payment and settlement in their overseas expansion, in what is seen as an official attempt to accelerate yuan internationalisation amid intensifying global trade tensions.
The comments come as US President Donald Trump has launched so-called "reciprocal" tariffs, which have shaken up global trade and roiled financial markets.
Although Trump announced a 90-day pause on planned tariff hikes for most countries, he raised duties on Chinese goods to 145 percent, prompting Beijing to retaliate with counter-measures.
The People's Bank of China (PBOC) said it encouraged commercial banks in Shanghai to expand cross-border credit expansion to lower companies' yuan financing costs and promote yuan-dominated imports and exports, according to a notice published on its website.
The PBOC said "it will strengthen the construction of Cross-Border Interbank Payment System (CIPS) ... study and push forward with the application of blockchain technology, and provide safe and efficient settlement and clearing services for global trades, shipping, investment and financing denominated in yuan," the notice said.
The central bank said it would also support the Shanghai Gold Exchange to cooperate with other overseas exchanges and expand the application of yuan benchmark prices in global mainstream markets.
The PBOC jointly issued the notice with National Financial Regulatory Administration, State Administration of Foreign Exchange and Shanghai municipal government.
Reuters
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