PBOC Shanghai Head Office to propel cross-border use of RMB in key areas & for key entities, official

Photo shows the Shanghai headquarters of the People's Bank of China, which is located in the Pudong area of Shanghai, the financial hub of China.

The Shanghai Head Office of the People's Bank of China (PBOC), the central bank, will adopt measures including achieving breakthroughs in cross-border use of Renminbi (RMB) in key areas and for key entities during 2021-2025 to boost free exchange of RMB, reported Xinhua-run Xinhua Finance Tuesday.

The report cited Sun Hui, deputy director of the PBOC Shanghai Head Office as saying, highlighting that boosting free exchange of RMB is proposed in the Tuesday-publicized 2021-2025 Shanghai financial center construction plan.

In the plan, enlarging opening-up of financial industry and strengthening the function of Shanghai as a financial opening-up hub and portal are also mentioned to foster free exchange of RMB.

To make breakthroughs in cross-border use of RMB in key areas and among key entities, PBOC Shanghai Head Office vowed to cultivate habits of using RMB as the settlement currency by market entities, in particular the central state-owned enterprise (SOE) and SOEs, and in key areas which include settlement for staple commodities such as crude oil, iron ores, grain, and rubber, and overseas engineering projects contracting.

The Shanghai Head Office will also form a clear, standard, complete and highly operational policy system for cross-border use of RMB to prioritize use of the currency in related areas.

It also said to further improve the convenience and experience for market entities to use RMB. Financial institutions in Shanghai will be guided to actively create, on basis of effective risk control, new products and vehicles for international use of RMB to improve their financial service capabilities.