China's central bank on June 17 announced a package of measures aimed at expanding the international use of the yuan, improving financial market liquidity and strengthening Shanghai's position as an international financial center.

Speaking at the 2026 Lujiazui Forum, People's Bank of China Governor Pan Gongsheng announced plans to establish the RMB Repo Facility for Foreign and International Monetary Authorities (FIMA RMB Repo) and launch a pilot program for offshore renminbi foreign-exchange trading in Shanghai.

The FIMA RMB Repo will allow eligible overseas institutions to obtain renminbi liquidity using bonds held in China's interbank market as collateral. The pilot program will allow six designated banks to conduct offshore renminbi foreign-exchange transactions in the Shanghai Free Trade Zone through the China Foreign Exchange Trade System (CFETS).

On the monetary policy front, Pan said the PBOC would further refine its policy framework by adjusting the operating rates of relevant liquidity tools to 25 basis points above and below the seven-day reverse repo rate, narrowing the interest-rate corridor from 70 basis points to 50 basis points.

The central bank is also studying a facility to support market stability and provide liquidity to non-bank financial institutions.

Separately, the PBOC will work with the Shanghai municipal government and other authorities to introduce an action plan for advancing the development of the Shanghai International Financial Center.

Pan said the Shanghai Digital Renminbi International Operations Center, announced last year, has become fully operational, while the CBETS platform, a digital renminbi cross-border settlement integrated service platform, has officially launched.