PBOC plans to boost international use of Chinese Yuan
By Lallalit Srijandorn
Updated: 11 May 2026
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The People's Bank of China (PBOC) launched a multi-pronged strategy on Monday to stabilize domestic markets and elevate the Chinese Yuan's global standing.
The People's Bank of China (PBOC) launched a multi-pronged strategy on Monday to stabilize domestic markets and elevate the Chinese Yuan's global standing.
Key quotes
Plans to enhance real estate financial oversight.
Plans to expand yuan offshore market.
Will boost international use of yuan.
To intensify review of macroeconomic and financial efforts.
Will support real estate market to halt decline and stabilise.
To innovate macro-prudential policy tools and foster sustained economic recovery and improvement.
To explore broadening central bank’s macroprudential and financial stability roles.
PBOC FAQs
The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market.
The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts.
Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi.
Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.
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