Published by Zeb BhamThe People's Bank of China may be preparing to allow the yuan to appreciate in foreign exchange markets, traders and analysts have claimed.Speaking to Bloomberg on condition of anonymity, dealers at three of the China's largest banks said they had been asked by the central bank to declare potential interest in new three-year bill sales, which are expected to be launched tomorrow."This is meant to pave the way for the central bank to raise interest rates or resume yuan appreciation," said Jiang Chao, an analyst at Guotai Juinan Securities Co.He went on to explain that the central bank can "drain liquidity by issuing bills if the interest rate hike or appreciation attracts more hot money".Elsewhere, Market News International reports that the reintroduction of three-year bills for the first time since June 2008 will allow the central bank to increase liquidity on a more long-term basis, following earlier decisions to raise capital requirements for major Chinese banks.For more information on international payments, visit our Smart FX site