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China drafts new rules on overseas yuan lending to boost use

Regulators to ease curbs on loan types, impose cap on extending credit abroad

Chinese financial regulators have proposed easing restrictions on overseas lending in yuan to boost the internationalization of the currency and lessen China's dependence on the dollar.   © Reuters

China plans to relax restrictions on domestic banks' ability to provide yuan-denominated loans overseas, a further step in its strategy to increase global use of the Chinese currency.

The proposals were made by the People's Bank of China (PBOC) and the State Administration of Foreign Exchange in a draft of new regulations released on Saturday. The rules, which apply to 27 onshore banks, impose limits on the total amount of overseas loans banks can make in yuan and foreign currencies, improve risk prevention and unify the regulations covering both types of lending.

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