Official announcements from the People's Bank of China (PBOC) or the State Administration of Foreign Exchange (SAFE)

China's PBOC and SAFE Raise Cross-Border Financing Parameter from 1.5 to 1.75 to Increase Liquidity and Ease Yuan Depreciation

Jan 13, 2025, 01:37 AM

The People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) have announced an increase in the macro-prudential adjustment parameter for cross-border financing. The parameter has been raised from 1.5 to 1.75, effective January 13, 2025. This adjustment aims to enhance the liquidity of the yuan and mitigate unilateral depreciation by allowing Chinese enterprises and financial institutions greater access to foreign capital. The change is expected to facilitate increased inflows and ease pressures on the yuan's value in the foreign exchange market.