PBoC for the first time disclosed its short foreign-currency positions in forwards and futures. As of end-February, it held USD28.9bn of such positions with commercial lenders and USD2.4bn worth of total long positions.

The disclosure follows speculations that the central bank was increasingly using derivatives to bolster the yuan, a more opaque method of intervention that won’t immediately draw down its foreign reserves. The disclosure is another step by the central bank towards greater transparency and efforts to build confidence with investors.

The PBOC’s forward position is “surprisingly low given the market volatility and the massive intervention,” said Sacha Tihanyi, at TD Securities.

"The reserves figures don’t necessarily give a comprehensive picture because non-PBOC institutions may absorb flows," noted Goldman Sachs