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.
