MNI BRIEF: PBOC To Issue Record Volume of CNH Bills Next Week
MNI (BEIJING) - The People’s Bank of China will issue CNY60 billion of offshore yuan-denominated bills in Hong Kong to shore up the currency which is under pressure due to U.S tariff concerns.
According to the Hong Kong Monetary Authority,the bills will be issue on Jan 17 with a maturity of six months. It is a record volume of offshore yuan bills issued by the PBOC so far. The issuance is believed to be a tool for the central bank to adjust liquidity in the CNH market.
MNI reported earlier this week that the PBOC will continue to support the yuan via a stronger-than-expected daily CNY mid-point price and tight offshore yuan liquidity, but a gradual weakness of the yuan is likely seen should the trade tension between China and the U.S worsens. (See MNI: PBOC Underpinning Yuan, But US Tariffs Key - Advisors)