Pan said that the central bank will improve the short-term interest rate regulation mechanism and launch a renminbi repo facility for foreign and international monetary authorities, as reported by Chinese media.
China’s central bank will introduce six new financial policy measures to strengthen monetary policy management, financial stability, and offshore renminbi development.
The initiatives include improving short-term interest rate regulation, launching a renminbi repo facility for foreign monetary authorities, and studying liquidity support tools for non-bank institutions.
The central bank will also study a macro-prudential liquidity support tool for non-bank financial institutions under specific circumstances.
In addition, the PBOC will pilot offshore renminbi foreign exchange trading in the Shanghai Free Trade Zone, jointly issue an action plan with Shanghai authorities to develop offshore finance, and officially launch an interbank market data reporting repository.
Fibre2Fashion News Desk (JP)
