PBoC plans to develop CNY offshore market in 2026; reiterates call to expand and innovate policy toolbox; will expand "macro-prudential" policy coverage

PBoC plans to develop CNY offshore market in 2026; reiterates call to expand and innovate policy toolbox; will expand "macro-prudential" policy coverage.

The PBoC's announcement to develop the CNY offshore market by 2026 signals a longer-term strategy to enhance the international use of the yuan, potentially increasing liquidity and trade. Their intention to expand the 'macro-prudential' policy suggests a focus on stabilizing the financial system amidst evolving economic conditions, which could impact rates and influence cross-border capital flows significantly.