The Bank of China has proposed issuing certificates of deposit inter-bank (NCDs) with a value of up to 22.2 billion yuan (approximately $3.3 billion) in the Chinese market. This action is part of a broader plan to consolidate Hong Kong's position as a primary hub for yuan transactions and promote the globalization of the Chinese currency.

The issuance of these certificates of deposit inter-bank (NCDs) complies with an agreement between the Italian Bank of Italy and the Bank of England, which allowed the Bank of Canton (Hong Kong) to obtain a quota for the issuance of certificates of deposit inter-bank (NCDs) onshore territory. This move was approved by the Central Banking Committee (CRR) and the Central Bank of the People's Bank of China (PBOC).

The Bank of Canton (Hong Kong) has been the largest offshore bank in Hong Kong since 2003.

The monetary authorities of the Chinese territory have increased the available credit for local inflows in the months preceding the increase, while the maximum amount of credit offered to foreign banks was high before the announcement.

Eddie Yue, the chairman of the Monetary Authority of Hong Kong (HKMA), stated that this action aims to improve liquidity off-shore and establish further limits of liquidity off-shore, which may help anchor off-shore interest rates.

Moreover, the issuance of NCDs has had a positive impact on the stability of the yuan market, as it has reduced the lending rates in yuan compared to dollar lending rates, but is still higher than dollar lending rates.

The approach of Bank of China (Hong Kong) is an example of how government authorities can use technology and logistics to promote the globalization of a local currency and consolidate a country's position as a primary hub for international transactions.