SHANGHAISep 23 – China’s central bank said it will steadily and prudently push forward the internationalization of the yuan to promote a higher level of two-way opening of its financial markets.
The People’s Bank of China also said it will promote a virtuous circulation of yuan markets at home and abroad, reiterating that it will “resolutely combat systemic risks,” according to a report on the internationalization of the yuan released on Friday.
The report comes at a time when the currency is facing renewed depreciation pressure, weighed down by a rising dollar, a tightening Federal Reserve and a slowing economy. [CNY/]
China, along with Japan, is one of the main exceptions in a global spate of interest rate hikes to rein in high inflation, with Beijing focused on reviving the shock-hit economy. covid-19.
However, this growing policy divergence weighed on the yuan and led foreign investors to cut their holdings of Chinese bonds for the seventh consecutive month in August.
The central bank said in the report that it will make it easier for foreign investors, especially global central banks and similar institutions, to increase holdings of Chinese assets.
China will “enhance the liquidity of yuan-denominated financial assets, further facilitate foreign investors’ access to Chinese markets to invest, and enrich the variety of assets available for investment,” the central bank said.