China's Central Bank Strengthens Yuan Usage in Global Trade

China's central bank, the People's Bank of China (PBOC), has announced a set of measures to accelerate the internationalization of the yuan amid escalating global trade tensions, notably with the United States. The PBOC is encouraging state-owned enterprises to use the yuan for overseas payments and settlements and has urged Shanghai-based commercial banks to expand cross-border credit to lower financing costs and increase yuan-denominated trade. The bank also plans to enhance the Cross-Border Interbank Payment System (CIPS), promote the adoption of blockchain technology for secure and efficient settlements, and support the Shanghai Gold Exchange in expanding the use of yuan-based benchmark prices in global markets. These initiatives are part of a broader push, jointly issued with key financial regulators and the Shanghai government, to strengthen the yuan's role in international trade, shipping, investment, and finance.