China Expands Cross-Border Cash-Pooling Trial for Multinationals

What’s new: China is expanding a trial program that facilitates multinational firms’ cross-border use of funds, another step in the country’s long-running push to internationalize the yuan.

Under the pilot, first launched in Beijing and Shenzhen in March 2021, selected firms can combine their cross-border yuan and multiple-currency cash pools into a single pool and buy foreign currencies for overseas payments at will within certain limits.