Hong Kong launches yuan lending tool with 150% larger quota to boost global use

Hong Kong launched an updated yuan financing tool for banks on Friday, featuring a quota 150 per cent larger than before. The move aims to give a significant boost to the use of the Chinese currency in daily global business. The tool, called the RMB Business Facility, is a funding window run by the Hong Kong Monetary Authority (HKMA). It allows participating banks to borrow yuan at the relatively cheap Shanghai three-month interbank offered rate, which is about 2 percentage points lower than other options.