China will establish a new liquidity facility for overseas central banks and official institutions, said People's Bank of China Governor Pan Gongsheng, in what analysts describe as a proactive step toward boosting global demand for yuan assets.
Pan Gongsheng
Speaking at the 2026 Lujiazui Forum on Wednesday, Pan announced the establishment of the RMB Repo Facility for Foreign and International Monetary Authorities (FIMA RMB Repo).
Under the facility, overseas central banks, monetary authorities, international financial organizations 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, adding, "The instrument will facilitate RMB liquidity management for overseas central bank-like institutions and their allocation of RMB assets."
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.
