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China will grant the United States a 250 billion yuan, or 38 billion dollar, quota under its Renminbi Qualified Foreign Institutional Investor program. That was the word Tuesday from central bank vice governor Yi Gang at the Strategic and Economic Dialogue.

Yi Gang (C), vice governor of the People's Bank of China, attends a press conference during the eighth round of China-U.S. Strategic and Economic Dialogues and the seventh round of China-U.S. High-Level Consultation on People-to-People Exchange, in Beijing, capital of China, June 7, 2016. (Xinhua/Zhang Yuwei)

PBOC Vice Governor Yi Gang said that as the Chinese yuan becomes more global, the bank has been offering higher RQFII quota to such economies as Hong Kong, Singapore, and the European Union. The decision to grant more quota to the US shows how much China values the American market.

"As the yuan's internationalization deepens, we will grant a total of 250 billion yuan to qualified institutions. China will also appoint banks to act as clearing banks for yuan businesses in America," Yi said.

The renminbi program known as RQFII was launched in 2011 and lets institutions use offshore yuan to buy securities in the mainland. The new quota will significantly expand the program, which stood at 501.77 billion yuan at the end of  May, with US firms accounting for 29 billion yuan.

"In the future we will also simplify the QFII and the RQFII programs,"  Yi said.

The vice governor also said the central bank has been considering the impact of a possible US fed rate increase in mid June.

"We will make full preparations in terms of monetary policy. The Fed had been talking about the rate hike for a long time so there's time to adjust, and analyze,"  Yi said.

The vice governor said a Fed rate increase might not be a bad thing for China. He said that's because an increase would signal a strong recovery in the US, and that Chinese exporters would benefit from a rise in consumer confidence across the Pacific.