PBOC launches RMB repo facility for foreign monetary authorities

China will establish a new liquidity facility for overseas central banks and official institutions, People's Bank of China Governor Pan Gongsheng said, in what analysts described as a proactive step toward boosting global demand for yuan assets.

Speaking at the 2026 Lujiazui Forum on Wednesday, Pan announced the establishment of the RMB Repo Facility for Foreign and International Monetary Authorities, or FIMA RMB Repo.

Under the facility, overseas central banks, monetary authorities, international financial institutions, and sovereign wealth funds will be able to obtain yuan liquidity from the PBOC through repo transactions using Chinese government bonds and other high-grade bonds as collateral, Pan said.

"The instrument will facilitate the RMB liquidity management for overseas central bank-like institutions and their allocation of RMB assets," Pan said.

Shao Yu, chief economist at the innovation center of Fudan University's School of Management, said the new repo facility bears similarities to the US Federal Reserve's FIMA Repo Facility, which provides dollar liquidity to foreign official institutions.

However, while the Fed's facility was built mainly to meet emergency demand for US dollar liquidity, China's latest move reflects a more proactive effort to expand international demand for yuan assets, he said.

"It would help the transformation of the yuan from a trade currency into a reserve and investment currency, moving toward a higher level of international currency status," Shao said.

The facility's relatively broad collateral scope — and potentially diverse maturities — suggest it is designed not only to address short-term liquidity needs, but also to support longer-term reserve allocation and investment demand from overseas institutions, he said.

"Undoubtedly, this could expand both the pool of yuan-denominated assets and global demand for them," Shao said.

Shi Jing in Shanghai contributed to this story.