China central bank defends yuan with record $8.2bn bill issue in Hong Kong

 

 China central bank defends yuan with record $8.2bn bill issue in Hong Kong

Currency under pressure as deflation worries persist, Trump inauguration nears. The People's Bank of China is taking action to support the yuan against downward pressure.

SHANGHAI -- The People's Bank of China on Thursday said it will issue renminbi-denominated central bank bills worth a record 60 billion yuan ($8.18 billion) in Hong Kong, in what analysts said was an effort by the central bank to defend the currency from weakening.

The PBOC said the notes will have a maturity of six months and that the interest rate will be determined in a bidding process. This is the largest ever single such issuance, according to data provider Wind Information. In December, the PBOC issued bills totaling 20 billion yuan.