PBOC mulls opening offshore yuan market to local commercial banks

Beijing

CHINA is considering allowing local commercial banks to participate in offshore yuan trade, the central bank said on Tuesday, as the country looks to project greater influence in the offshore currency market.

China has gradually loosened its capital controls in efforts to promote international use of its currency, but domestic banks can only participate in the offshore market through overseas subsidiaries, with trading kept separate from the tightly-controlled domestic yuan market.