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PBOC is quietly supporting yuan with three-step strategy

The People's Bank of China said on Tuesday that it will issue yuan-denominated bills in Hong Kong recently, only days after it sold 20 billion yuan bills in the city last week, in a move to support the currency as it's approaching the psychologically critical line of 7 per dollar.

Traders say bill issuance in the offshore market is only one part of the strategy to prop up the yuan. There are anther two parts: counter-cyclical factor that keeps the yuan's fixing relatively stronger and intervention in the yuan's forward market.

"The announcement is . . .

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