China's central bank issues bills in Hong Kong
(MENAFN) China's central bank is set to release bills worth 60 billion yuan (approximately USD8.3 billion) in Hong Kong on January 15.
According to the People's Bank of China, these bills will have a duration of six months, equating to 182 days.
The purpose behind this action is to diversify yuan-denominated investment options with strong credit ratings in Hong Kong and enhance the yield curve for yuan in the area, the central bank explained.
This issuance will exceed the value of any previous offerings, according to Xinhua's Shanghai Securities News.
Experts noted that the release of offshore yuan bills could tighten liquidity in the offshore yuan market and help stabilize its exchange rate abroad.
This move clearly communicates a policy intention to stabilize both the yuan's exchange rate and market expectations, which is expected to reduce significant fluctuations in the currency's value, stated Pang Ming, a researcher at the National Institution for Finance and Development.
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