The People’s Bank of China requested its biggest banks to increase the use of the yuan in trade with foreign partners

• raising the required ratio to 40% from 25%
• intention is to push yuan deeper into global markets, providing an alternative to dependence on the US dollar

The PBoC request is not legally binding, but that banks that don’t comply could be subject to tighter scrutiny and regulation. For example, if a bank misses the target, it could get a lower rating, making it harder to expand services.

Info comes via a Bloomberg report.

Pan Gongsheng, People’s Bank of China governor

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