The EDB has been granted a licence for direct access to the Chinese CIBM bond market

The EDB has been granted a licence to operate on the Chinese interbank bond market. This will enable the bank to conduct securities transactions directly and raise funding in yuan.

According to the EDB, the bank has been granted the right to trade bonds, conduct repo transactions and deal in derivatives on the CIBM market. The market’s turnover exceeds 160 trillion yuan (approximately $22 trillion), making it the second largest in the world after the US.

The bank notes that the licence will enable it to diversify its investment portfolio, manage yuan liquidity more effectively and expand project financing in the Chinese currency.

The decision was taken against the backdrop of the yuan’s growing role in international settlements and the implementation of infrastructure projects across Eurasia. Previously, the EDB raised funds through various international capital markets; it has now gained direct access to China’s financial market.