MNI BRIEF: PBOC To Support Europe-ASEAN Trade Corridors

The People's Bank of China will encourage lenders to provide loans and facilitate diverse funding such as corporate bonds and real estate investment trusts for the construction of trade and logistics corridors in western China that connect Europe and ASEAN, officials told a briefing on Thursday. 

A fund will be established in Chongqing to support infrastructure and industrial park construction along the routes, they said. The PBOC will encourage use of the yuan for pricing and settlements in bulk commodity transactions, and will explore expanding the application of the digital yuan in payment settlements, financing, and tax refunds along the corridor, they said.

Bilateral currency cooperation with southeast and central Asian countries will be strengthened, and foreign trade enterprises supported in using the yuan for settlement, Deputy Governor Lu Lei told reporters, adding that this will also contribute to the Belt and Road Initiative.  (See MNI INTERVIEW: PBOC Should Be Flexible, Let Yuan Strengthen-Yu)