Hong Kong Boosts Yuan Supply to Banks in Push for China Currency

Hong Kong will double the supply of yuan available for banks to borrow, in the latest step to meet growing demand and help China boost the global use of its currency.

The total size of the so-called RMB Business Facility in the city will rise to 200 billion yuan ($28.8 billion), with effect from Feb. 2, the Hong Kong Monetary Authority announced Monday. The program allows banks to receive loans of up to one year from the de facto central bank, using the Shanghai Interbank Offered Rate as the pricing benchmark.