People's Bank of China to Issue 5 Billion Yuan Worth of Bills in Hong Kong
Date
3/16/2023 8:34:13 AM
(MENAFN) The People's bank of China has announced its plan to issue 5 billion yuan (about 723 million U.S. dollars) worth of bills in Hong Kong on Tuesday. The bills will have a maturity of six months, or 182 days, according to a statement released by the central bank.
The central bank's move aims to enrich yuan-investment products with high credit ratings in Hong Kong and improve the yield curve of yuan in the region. This is part of China's ongoing efforts to internationalize its currency and promote its use in global trade and investment.
Since November 2018, the People's Bank of China has established a standard mechanism for issuing central bank bills in Hong Kong. This mechanism allows the bank to issue yuan-denominated bills to investors in Hong Kong, which can help to improve the liquidity of the currency in the region.
The issuance of central bank bills in Hong Kong also helps to deepen the financial ties between China and Hong Kong. Hong Kong has long been a major financial hub in the region, and the issuance of yuan-denominated bills by the People's Bank of China can help to strengthen the city's position as a leading financial center.
Overall, the issuance of 5 billion yuan worth of bills by the People's Bank of China in Hong Kong is a significant move that aims to promote the use of yuan in global trade and investment. It also helps to deepen the financial ties between China and Hong Kong, and further strengthens Hong Kong's position as a leading financial hub in the region.
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