People’s Bank of China Governor Pan Gongsheng announced a renewed push for the internationalization of the Chinese yuan. In a Tuesday press conference, he stated the goal is to simplify the yuan for cross-border transactions and promote its use in global trade and financial systems, particularly within BRICS and other partners.
People’s Bank of China (PBOC) Governor Pan Gongsheng stated the country is actively pursuing the yuan’s internationalization. “We are gradually promoting yuan internationalization,” Gongsheng said in a press conference.
This initiative aims to simplify the yuan for cross-border transactions and promote its usage in trade. The announcement comes as the BRICS economic bloc has been scaling back its broader de-dollarization initiative.
Gongsheng explained that China will create a more safe, efficient, and diversified cross-border payments system. This includes pushing for the yuan’s use among BRICS members for payment settlements.
Russia is already heavily utilizing this approach, having settled nearly 90% of its trade with China in local currencies. The optimization of financial flows is “an integral part of the overall process of reforms and openness of China,” the governor added.
He explained that the liberalization degree in this sphere continues to grow. The PBOC “firmly promotes international financial cooperation and proactively participates in global financial management.”
China is in regular contact with the European Union and nations like Brazil regarding yuan usage. The country could further promote the currency at the upcoming BRICS summit in New Delhi.
