The People’s Bank of China (PBOC) has committed to driving further internationalisation of the renminbi at its mid-year conference on work in the second half of 2022.
PBOC said at the conference that it would “steadily raise the level of internationalisation of the renminbi,” with specific measures to include:
- Strengthening domestic and foreign currency policy coordination.
- Firming up the market foundations for renminbi settlement for trade and investment.
- Supporting offshore entities in the issuance of panda bonds.
- Steadily driving the launch of reciprocal connect initiatives.
- Raising the liquidity of renminbi financial assets.
- Supporting the healthy and orderly development of the offshore renminbi market.
Since the start of the year the International Monetary Fund (IMF) has raised the weighting of the Chinese renminbi in its Special Drawing Rights (SDR) from 10.92% to 12.28%, putting it in third place behind the US dollar and the euro.
The official news agency for China’s financial regulators said that the increase in the renminbi’s weighting would help to “further raise the appeal of renminbi assets to global capital.”