Hong Kong Monetary Authority urges banks to drive global yuan adoption

[HONG KONG] Hong Kong Monetary Authority (HKMA) on Thursday (Jul 2) called on all banks to promote the cross-border use of the yuan, rolling out a six-point strategy to drive global adoption.

To boost the currency’s footprint, the de facto central bank is urging lenders to create customised yuan products, capitalise on Hong Kong’s financial hub status, and restructure employee incentives to directly reward yuan business growth.

HKMA said it is maintaining close dialogue with the industry and relevant authorities to explore solutions for the challenges faced by the companies in using the yuan.

“In response to market feedback on the challenges of direct foreign exchange conversion between RMB and regional currencies, we are working with other central banking institutions in the region to explore possible solutions,” said HKMA.

Last month, the HKMA signed a deal with Bank Indonesia and the People’s Bank of China to promote direct bilateral trade in the yuan and the rupiah. REUTERS