China's central bank is selling more yuan-denominated bills in Hong Kong, which should absorb yuan funds in the offshore market and so make it harder to short the struggling currency. The yuan, also called the renminbi, has fallen sharply against the dollar since April and is now hovering close to the key psychological barrier of 7 yuan per dollar.
The People’s Bank of China (PBOC) said Wednesday it will sell 30 billion yuan ($4.35 billion) worth of bills in Hong Kong on June 26, through 20 billion yuan of one-month bills and 10 billion yuan of six-month bills. The sale would be the biggest since PBOC issued the first bills of this kind in Hong Kong in November. The central bank has performed similar issuances three times before, to a total amount of 60 billion yuan.
Contact reporter Zhao Runhua (firstname.lastname@example.org)