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The People’s Bank of China (PBOC) announced on Friday that it will push forward yuan internationalisation based on market principals.

Additional takeaways

“Will remove obstacles for use of yuan both domestically and overseas.”

“Will make it easier for foreign investors to use yuan to invest in China’s bonds, stocks.”

“Will promote healthy development of the offshore yuan market.”

“Will strengthen monitoring of cross-border capital flows.”

“Will use counter-cyclical adjustments to prevent risks from cross-border capital flows.”

“More firms in countries along the belt and road initiative are excepted to accept yuan-based settlement.”

Market reaction

The USD/CNY pair largely ignored these remarks and was last seen trading at 6,9515, up 0.11% on the day.