Latest news with #yuan internationalisation
Reuters
01-08-2025
- Business
- Reuters
China's central bank sets up new financial stability committee
BEIJING, Aug 1 (Reuters) - China's central bank has set up a macroprudential and financial stability committee to help defuse financial risks, it said on Friday, pledging to maintain accommodative policy. In its mid-year work summary, the People's Bank of China (PBOC) said it will focus on preventing and resolving key financial risks, supporting local government financing platforms in debt resolution, and managing risks in key regions and institutions in an orderly way. It will further strengthen risk monitoring, assessment, and macroprudential management, it said. The PBOC will continue to implement an "appropriately loose" monetary policy in the second half of this year, use various monetary policy tools to keep liquidity ample and guide financial institutions to sustain reasonable credit growth. The central bank will ensure the financing needs of Chinese trade-related firms, and maintain the flexibility of the yuan exchange rate, it said. The PBOC also pledged to push yuan internationalisation "in a steady and prudent" manner, expand the yuan's use in trade, strengthen its role as a financing currency, and optimise policies for currency pools and overseas listings of domestic firms.
South China Morning Post
28-07-2025
- Business
- South China Morning Post
China's yuan reshaping global order – but US-backed stablecoins seen as a threat
The yuan's internationalisation remains on an upwards, if uneven, trajectory and is gradually reshaping the global monetary order, according to a new study released at a high-profile economic forum in Beijing – though some participants warned US efforts to dominate digital finance pose risks. Advertisement The yuan internationalisation index, which tracks the currency's global use, rose by about 11 per cent in 2024 to 6.06, according to the Renmin University report released at this year's International Monetary Forum, co-hosted with Nankai University on Sunday. By comparison, the US dollar scored 51.13 in 2024, down from 51.52 the previous year, while the euro slipped 3.8 per cent to 24.07 on the index. Meanwhile, the yuan ranked ahead of the British pound and Japanese yen, which scored 4.47 and 3.69 respectively. The report predicted the Chinese currency would strengthen further and widen the gap with both. Beijing has worked to steadily increase the yuan's global use – especially as it doubles down on efforts to manage risks in cross-border capital flows. Advertisement 'The spillover effects of geoeconomic shocks have not only weighed on China's real economy and financial markets, but also disrupted global trade and investment systems, supply chains and international financial markets,' the report's authors wrote.
