FX Snap: RMB – Initial takeaways from the Lujiazui Forum

Research evidence excerpt

FX Snap: RMB – Initial takeaways from the Lujiazui Forum

18 June 2026

FX Snap CurrenciesEM Asia

RMB – Initial takeaways from the Lujiazui Forum

◆ PBoC officials highlighted measures expanding RMB Jingyang Chen

settlement, CNH trading, and capital account opening up Asian FX Strategist The Hongkong and Shanghai Banking Corporation Limited

jingyang.chen@hsbc.com.hk

The Lujiazui Forum yesterday highlighted key points to note from the RMB’s perspective, +852 2996 6558

with an emphasis on further expansion of channels to grow the offshore RMB market.

Pressing ahead with its RMB internationalisation agenda

The PBoC will set up a RMB Repo Facility for Foreign and International Monetary

Authorities (FIMA), which will allow eligible overseas central banks, international financial

organisations, and sovereign wealth funds to obtain RMB liquidity from the PBoC by

pledging high-grade RMB-denominated bonds as collateral. The facility will offer 7-day, 1-

month, and 3-month tenors. This new tool bears some similarity to the US Federal

Reserve’s FIMA Repo Facility, which has been one of the emergency mechanisms used

by the Fed to supply USD to global markets during times of stress.

At present, the PBoC mainly relies on its bilateral currency swap lines to provide the RMB

liquidity to foreign central banks, which has been proved to be effective in encouraging

trading partners to have a higher growth of RMB payments with mainland China. The new

repo facility is likely to reinforce this objective. In addition, the use of RMB-denominated

bonds as collateral – rather than the exchange of local currency under swap

arrangements – could incentivise some overseas institutions to increase their holdings of

RMB bonds. Overseas institutions, including central banks, had reduced their RMB bond