China Creates Yuan Liquidity Reserve Pool With Bank of International Settlements

(Bloomberg) — The People’s Bank of China (PBOC) will create a yuan reserve pool with the Bank for International Settlements (BIS) and five other regulators to provide liquidity to participating economies in periods of market volatility.

China, along with Indonesia, Malaysia, Hong Kong, Singapore and Chile, will each contribute a minimum of 15 billion yuan ($2.2 billion) or U.S. dollar equivalent to so-called Renminbi Liquidity Arrangement, according to a PBOC statement on Saturday. The funds will be placed with the BIS.