(18 November 2025 – China) The People’s Bank of China (PBoC) has committed to supporting greater financing in the Renminbi (RMB) by international entities as a key driver for hastening the pace of RMB internationalisation.
China’s central bank is focusing on cheap borrowing costs and increased demand for the currency offshore to promote the role of the RMB as a funding currency. The move is viewed as a key step to advance RMB internationalisation and support the use of funding products to help make it easier for overseas institutions and corporations to obtain the currency.
Emerging-market borrowers including Hungary, Kazakhstan and Kenya have denominated debt funding in RMB for major construction projects while Ebury is planning to increase hiring in its China offices to meet growing yuan-settlement demand related to Chinese enterprises.
“This is part of China’s plan to broaden the usage of the renminbi for multiple purposes. As China’s yields become lower, the RMB could become more attractive as a funding currency. China could promote the development of panda bond and Chinese yuan bond markets, which could help enhance the offshore Chinese RMB liquidity pool” commented Credit Agricole CIB Hong Kong Economist, Xiaojia Zhi.