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.
Chinese Central Bank Trims Reverse Repo Rates 10%
Chinese Central Bank to Inject 1.2 Trillion Yuan via OMO on 3 February