Shanghai to Keep Promoting Cross-Border Use of Yuan, Local PBOC Governor Says

Shanghai will continue to promote the cross-border use of the Chinese yuan and foster a new ecosystem for cross-border payments in coordination with the new Digital Yuan International Operation Center, according to the governor of the local branch of the People’s Bank of China.

Shanghai will expand the coverage and scope of cross-border yuan supporting policies, broaden the list of eligible high-quality enterprises for cross-border yuan settlement, enhance the convenience of business processing and the efficiency of funds credited to accounts to better meet the needs for yuan transaction settlement, investment, financing, and risk management, Jin Penghui told Yicai in an exclusive interview.

Cross-border yuan-denominated receipts and payments in Shanghai totaled CNY32.4 trillion (USD4.7 trillion) last year, up 9 percent from 2024, accounting for 46 percent of China’s total, according to data from the Shanghai Head Office of the PBOC. Of which, CNY24.2 trillion came from securities investment activities, accounting for about 75 percent of the total.

Shanghai should seize the favorable opportunities from relatively low yuan interest rates, actively carry out yuan overseas lending through domestic and overseas links, and open up broader space for cross-border yuan investment and financing by upgrading and optimizing the functions of free trade accounts and building offshore financial scenarios, Jin suggested.

The city will continue to promote high-level financial opening-up and accelerate the establishment of a global center for the allocation of yuan assets and a risk management center by steadily expanding institutional opening-up in terms of rules, regulations, management, and standards, Jin noted.

The digital yuan cross-border digital payment platform, the digital yuan blockchain service platform, and the digital asset platform established in Shanghai by the Digital Yuan International Operation Center last September have injected new impetus into the construction of Shanghai as an international financial center, Jin said.

The cross-border digital payment platform can address the pain points in traditional cross-border payment and foster a new cross-border payment ecosystem featuring "zero loss, interconnected systems, and compliance,” he added.