Forex Market Two-Way Opening Strengthened: Multiple Banks Launch Offshore RMB Forex Trading

At the 2026 Lujiazui Forum, PBOC Governor Pan Gongsheng announced the launch of offshore RMB forex trading pilots in the Shanghai Free Trade Zone, with six banks approved as the first batch to conduct trading.

The joint document by PBOC, NDRC, Financial Regulatory Administration, CSRC, SAFE, and Shanghai Municipal Government on the Action Plan for Developing Offshore Finance in the Shanghai International Financial Center also proposed supporting qualified commercial banks to conduct offshore RMB forex trading business in the Shanghai FTZ. It supports the FX Trading Center to enhance offshore forex trading service capabilities and promote the development of direct RMB trading against non-USD currencies. Relying on the FX Trading Center platform, it pools global foreign currency pair and currency market liquidity to strengthen international capital allocation functions.

Multiple banks are actively participating in Shanghai FTZ offshore RMB forex trading. Interviewed experts noted that banks direct participation in this business helps them more flexibly coordinate onshore and offshore market resources, enhance forex market-making, trading, and quoting capabilities, thereby helping maintain RMB exchange rate stability at a reasonable and balanced level.

Improving Forex Market-Making, Trading, and Quoting Capabilities

Pan Gongsheng stated that to promote two-way opening of the forex market, foster onshore-offshore market integration, and help Shanghai build a global RMB asset allocation center and risk management center, PBOC will authorize ICBC, ABC, BOC, CCB, BOCOM, and CITIC Bank to use CFETS for offshore RMB forex trading.

According to the six-bank authorization, these institutions will leverage the China Foreign Exchange Trade System (CFETS) to conduct offshore RMB forex transactions, including spot, forward, and swap products. The pilot aims to deepen the integration of onshore and offshore RMB markets and enhance the global accessibility of RMB-denominated financial products.

Expanding RMB Internationalization Infrastructure

Industry observers highlighted that this initiative represents a significant step in building the institutional infrastructure for RMB internationalization. By allowing major Chinese banks to operate directly in the offshore RMB forex space, the pilot creates a more seamless channel for international investors to access RMB-denominated assets while providing domestic banks with enhanced tools for managing cross-border currency risks.