The People’s Bank of China (PBOC) has made net injections into the Chinese banking system via reverse repo operations in a bid to keep liquidity on an even keel as the end of the year approaches.
On 21 December PBOC announced that that it was undertaking 19 billion yuan in 7-day reverse repo operations and 141 billion yuan in 14-day reverse repo operations, at rates of 2.0% and 2.15% respectively.
Given that 2 billion yuan in reverse repos were scheduled to mature, the move resulted into a net injection of 158 billion yuan.
PBOC also made a net injection of 144 billion yuan via reverse repo operations the day previously on 20 December.