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 . . .
To continue reading, please subscribe.
We highly value independence. Yuan Talks is solely funded by subscriptions from thousands of intelligent readers like you. Don't miss out!
What you'll get:
- Original and in-depth reporting on China's economy and financial markets with details, data and perspectives you don't read elsewhere!
- Daily Brief newsletter delivered before market open every weekday wrapping up the most important China-related information.
- Weekly Market Wrap-up on Chinese equities, bonds, the yuan and commodities!
- Interviews with China experts. We find you insights you should never miss!
Not ready for the full service? Subscribe to our Free Weekly Newsletter first.
Already have an account? Sign In