China's central bank has approved a pilot programme allowing some domestic institutional investors to buy offshore yuan products, the official Shanghai Securities News said, as Beijing pushes ahead in internationalising its currency. The People's Bank of China (PBOC) has recently approved the so-called Renminbi Qualified Domestic Institutional Investor (RQDII) programme, the newspaper reported on Tuesday, without saying which institutions would be qualified to participate.
To elevate the yuan's status as a global currency, Beijing has established offshore yuan centres from Sydney to London, signed swap lines with countries in the Middle East and allowed foreign companies in China to move yuan funds across borders with greater freedom than ever before. A PBOC official told Reuters last month that the central bank was studying the RQDII programme to allow domestic investors to invest overseas using the Chinese currency.
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