People's Bank of China reveals derivatives holdings position for 1st time

The People's Bank of China (PBOC) reported data on its derivatives holdings positions in forwards and futures in foreign currencies versus the yuan for the first time on Thursday.

The move should help address appeals from investors and the International Monetary Fund (IMF) that the central bank cast more light on its derivatives holdings, given allegations that it has been using currency swaps and other derivatives to intervene in offshore forex markets to support its currency.

The lines on short positions and long positions appear in a spreadsheet that could be downloaded from a table published by the PBOC on its website on Thursday afternoon.

It shows that the central bank holds a nominal short position of $28.9 billion and $2.438 billion worth of total long positions.