China facilitates interbank borrowing in foreign currencies

China witnessed on Monday its first interbank borrowings in foreign currencies using foreign currency-denominated negotiable certificate of deposits (NCDs) as collateral, the Shanghai Clearing House said.

The completion of such repurchase agreements by six Chinese banks marks a broadening of the types of collateral eligible for foreign-currency interbank lending, the clearing house said in a statement.

The move would help institutions broaden foreign-currency financing channels, and improve liquidity management, it said.