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MNI POLICY: PBOC to Be More Proactive on Yuan Globalization

MNI (Sydney)

Chinese regulators will be more proactive in facilitating the yuan's global use given increasingly complex domestic and external environments, even as it the market plays a major role in the process, said Zhu Jun, the director of the international department of the People's Bank of China (PBOC).

The central bank could facilitate bilateral trade and investment through more currency swaps, cross-border yuan settlements and payment infrastructures as it updates the yuan internationalization strategy following a comprehensive assessment, Zhu said at the 2020 Bund Summit Saturday.

Liquidity in the secondary bond market needs to be improved to form a full yield curve for government bonds, noted Zhu.

Separately at the same event, PBOC Governor Yi Gang said China will push forward with yuan globalization, make its exchange rate more market-based and reduce restrictions on its cross-border use. The PBOC will allow the yuan to be more flexible and let it play a bigger role in stabilizing the economy and balancing international payments, Yi said.

The forum was co-sponsored by the China Finance 40 Forum (CF40), whose members include current and past monetary officials.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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