How the RMB Business Facility Will Help Consolidate Hong Kong’s Financial Role Hong Kong has long been a crucial intermediary in China's economic rise, with its financial sector playing a vital role in facilitating trade between East and West.
The latest move by the Hong Kong Monetary Authority (HKMA) to expand the quota of its RMB Business Facility is the latest development in this ongoing saga.
The RMB Business Facility allows banks to access cheap yuan financing through the Shanghai three month interbank offered rate, which is approximately 2 percentage points lower than the US Federal Reserve rate.