The People’s Bank of China (PBOC) is actively promoting the yuan as a global funding currency by providing direct yuan loans, trade financing, and yuan-denominated bonds to international companies and financial institutions. This strategic move is designed to lower borrowing costs compared to the U.S. dollar and enhance the yuan's role in global trade and investment. In September, the yuan represented 7.3% of global trade finance settlements, according to Swift data, highlighting its growing influence in international finance.
PBOC Pushes Yuan as Global Funding Currency with Direct Loans and Bonds
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