The People’s Bank of China (PBOC) has scheduled the sale of another tranche of offshore renminbi central bank bills in mid-August via Hong Kong.
PBOC announced on Tuesday that it would sell 30 billion yuan in offshore bills in Hong Kong on 14 August, including 20 billion yuan in three-month bills and 10 billion yuan in one-year bills.
The Chinese central bank said that the move was intended to improve the yield curve of Hong Kong’s yuan-denominated bonds.
PBOC has traditionally used central bank bill sales in Hong Kong as a means of propping up the offshore exchange rate by absorbing liquidity.
The move comes just after the renminbi fell below the key seven to the dollar threshold amidst worsening trade tensions with the US, with Washington declaring China a currency manipulator at the start of the week.