Banking Economy

Chinese Central Bank Injects 1.7 Trillion Yuan in Two Days Since End of Lunar New Year Vacation

The People’s Bank of China (PBOC) has injected 1.7 trillion yuan (approx. USD$242.9 billion) into the Chinese monetary system via open market operations since the start of the week.

On 4 February PBOC released 500 billion yuan into the Chinese market via reverse repo operations, after making an injection of 1.2 trillion yuan the day previously.

The 7-day and 14-day reverse repo rates for PBOC’s record-breaking single day injection of 1.2 trillion yuan on 3 February were 2.4% and 2.55% respectively, both of which represented a decline of 10 basis points.

PBOC said that its open mar­ket op­er­a­tions were for the pur­pose of en­sur­ing am­ple liq­uid­ity lev­els dur­ing ef­forts to com­bat the novel coro­n­avirus. 

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