More measures regarding yuan internationalization and the yuan bond market are expected to be introduced in the coming weeks, according to Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority.
Yue pointed out that Hong Kong is uniquely positioned to contribute to the country's 15th Five-Year Plan objective of building a strong financial nation, specifically through nurturing a strong currency and bolstering Hong Kong's status as a premier international financial center.
Yue noted that yuan internationalization needs liquidity, highlighting that Hong Kong has expanded its yuan liquidity facility to 200 billion yuan (HK$231.14 billion) to channel funds through its banking system to at least 12 countries and regions.
He said that the Middle East and Association of Southeast Asian Nations have already begun utilizing the yuan for trade settlement, which is the potential business opportunities for Hong Kong banks.
Yue also addressed current frictions in the offshore market, noting that direct exchange between the yuan and certain local currencies still faces challenges such as high conversion costs, adding that they are actively exploring the solutions.
