PBOC Deputy Governor Signals Expansion of Offshore Yuan Market and Liquidity
Digital FinanceMacroDigital Finance
Lu Lei, Deputy Governor of the People's Bank of China, said on the 10th that the central bank plans to further develop the offshore yuan market and expand liquidity as part of efforts to internationalize the currency. Speaking at a press conference, Lu said the PBOC will keep offshore yuan liquidity ample and stable and will regularize the issuance of government bonds and central bank bills in the offshore market, adding that "the internationalization of the renminbi is a sustained and steady process, and it is irreversible." The PBOC will create an environment that makes it easier for overseas entities to hold and use the yuan, and will actively promote the use of the digital yuan in cross-border transactions, he said. Lu noted that renminbi-denominated assets are becoming increasingly attractive to global investors, and said overseas entities currently hold more than 11 trillion yuan, or 1.64 trillion dollars, in onshore renminbi-denominated financial assets. He stressed that China aims to keep the yuan exchange rate basically stable and has no intention of gaining a trade advantage through a weaker currency.
