I posted on this back on Monday this week:
- PBOC is set to issue a record volume of offshore yuan bills in Hong Kong this month
- aiming to stabilize the yuan’s exchange rate amid growing pressures. Issuing offshore yuan bills is a strategy for absorbing excess liquidity in the offshore market, reducing downward pressure on the currency.
The news is still being popped up around the place.
Wall Street Journal now, citing Goldman Sachs:
- China to Issue Central Bank Bills in Hong Kong Amid Weakening Yuan
- tender of 60 billion yuan, equivalent to $8.18 billion, of six-month bills to be held on Jan. 15 for settlement on Jan. 17
- planned issuance of a large amount of central bank bills in Hong Kong should drain offshore-yuan liquidity and discourage offshore-yuan short positions, said Goldman Sachs’ Economics Research team.
I guess the new bit is the confirmation of the amount, 60bn yuan. A record amount. But we already knew it’d be the largest ever, see my post linked above.
Guess it pays to read ForexLive.
Our correspondent in Beijing 😉
This article was written by Eamonn Sheridan at www.forexlive.com. Source