China’s central bank is selling RMB-denominated bills in Hong Kong, which should absorb RMB funds in the offshore market and make it harder to short the struggling currency, said Caixin.
The RMB has fallen sharply against the dollar since April and is now hovering close to the key barrier of 7-per-dollar.
The PBoC said Wednesday it will sell RMB 30 billion ($4.35 billion) of bills in Hong Kong June 26. The sale would be the biggest since the PBoC issued the first bills of this kind in Hong Kong in November. The central bank has performed similar issuances three times before, to a total amount of RMB 60 billion.