PBoC to issue central bank bills to support yuan

Move could reduce liquidity of offshore yuan and deter “hot money” flows, analysts say

People's Bank of China
People’s Bank of China: vowed to keep yuan stable after it fell to below seven against US dollar

China’s central bank will sell 30 billion yuan ($4.3 billion) of bills using the Hong Kong Monetary Authority’s bond-tendering platform on August 14.

The move will help improve the yuan yield curve in the offshore market, the People’s Bank of China (PBoC) announced on August 6. 

The central bank plans to issue 20 billion yuan of three-month bills and 10 billion yuan of one-year bills. This could reduce offshore yuan liquidity and increase the cost of shorting the Chinese currency, analysts say

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