Sheng Songcheng: Increased issuance of central bank bills in Hong Kong will help stabilize foreign exchange market expectations

According to statistics, the issuance of central bank bills in the three months was 10 billion yuan generally, but this time the issuance increased by 10 billion yuan compared with the previous three-month issuance, hitting a new high in three years. Since the beginning of 2023, the People’s Bank of China (PBOC) has successfully issued 8 rounds of central bank bills in Hong Kong, totaling 95 billion yuan. Sheng Songcheng, former director of the Investigation and Statistics Department of PBOC, said that the additional three-month central bank bills moderately tightened the liquidity of the offshore RMB market and increased the cost of short-selling RMB, which is conducive to stabilizing foreign exchange market expectations. To a certain extent, it is also one of the policy control tools.