The People’s Bank of China (PBOC) plans to make a hefty liquidity injection via open market operations on 3 February to counteract the potential impacts of the novel coronavirus on the Chinese economy.
PBOC has announced that it will undertake 1.2 trillion yuan (approx. USD$173 billion) in reverse repo operations on 3 February, with the goal of “maintaining rationally ample liquidity in the banking system and stable operation of the money markets during the special period of disease control and prevention.”
According to PBOC overall liquidity in the Chinese banking system will consequently be 900 billion yuan ahead of the same period last year.
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