RMB Internationalisation Back in Focus for PBoC
(20 July 2023 – China) The new head of the People’s Bank of China (PBoC) is expected to speed up capital market liberalisation and accelerate Renminbi (RMB) internationalisation.
Pan Gongsheng succeeded Guo Shuqing as head of China’s central bank following his appointment as PBoC Party Secretary, FinanceAsia reports.
RMB internationalisation progress was boosted in in May when Hong Kong and China announced the launch of Swap Connect, a mutual market access program streamlining institutional inclusion in Asia’s interbank interest rate swap markets. In June the Hong Kong Stock Exchange (HKEX) also announced the launch of a Hong Kong Dollar (HKD)-RMB dual counter model.
“The PBoC will deepen interest rate reform and guide related self-regulating mechanisms to maintain competition in the deposit market and to stabilise borrowing costs” said PBoC Head of the Monetary Policy Department, Zou Lan.