00:00China's central bank has signaled it could shift towards an overnight policy rate,
00:05a move that would bring its monetary framework closer to those used by major central banks,
00:11including the U.S. Federal Reserve.
00:13People's Bank of China Governor Pang Gongsheng said officials are looking at ways
00:18to improve the management of short-term interest rates.
00:22Pang's remarks are the latest sign that Beijing may be preparing to change
00:27how it guides borrowing costs across the economy.
00:31In recent months, the central bank has paid closer attention to overnight lending rates,
00:36which play a key role in China's financial markets.
00:39An overnight policy rate would give policymakers more direct influence over short-term funding costs,
00:45while bringing China's system closer to those used by other major central banks.
00:50Pang also unveiled new measures to promote the international use of the yuan.
00:54They include a facility that would make it easier for foreign central banks
00:59and other official institutions to access yuan liquidity.
01:03The move is part of China's broader effort to expand the global role of its currency
01:08and reduce its reliance on a financial system dominated by the U.S. dollar.
01:12A
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