Chinese Central Bank Makes Net Injection of 170B Yuan via OMO

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The People’s Bank of China (PBOC) has made a net injection of 170 billion yuan into the Chinese banking system via open market operations, with the goal of keeping liquidity on an even keel following the end of the Spring Festival Vacation.

PBOC undertook 471 billion yuan in 7-day reverse repo operations on 31 January at a rate of 2.0% – unchanged compared to the previous round of open market operations.

Given that 301 billion yuan in PBOC’s reverse repos were scheduled to mature on the same date, the move resulted in a net injection of 170 billion yuan into the Chinese banking system.