China c.bank makes biggest daily cash injection in three months


SHANGHAI: China's central bank made the biggest daily cash injection into the banking system via open market operations in nearly three months on Monday, to ease pressure from rising cash demand towards the end of the first half of the year.

The People's Bank of China (PBOC) injected 100 billion yuan ($14.95 billion) worth of seven-day reverse repos, the biggest daily injection via the liquidity tool since March 31.

The central bank said the operation was to keep "half year-end liquidity stable," according to an online statement.

The PBOC started pumping more cash into the financial system last Friday. Demand usually surges towards the end of the quarter, when commercial banks also have to shore up cash positions for an administrative quarterly health check by the central bank.

With 10 billion yuan worth of such reverse repos due on Monday, the PBOC net injected 90 billion yuan on the day. - Reuters

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

PBOC , repo , China ,

   

Next In Business News

Copper supported by hopes interest rates may soon peak
Oil price rises nearly 2% on strong economic data but trade choppy
Wall Street muted on mixed inflation messages
Stronger 2Q growth seen
TNB: Meeting on probe over July 27 power outage has started
Wall St set for higher open after selloff on jobs data
BAssets disposes 0.44% equity interest in BCorp for RM5.64mil
Hextar to acquire entire stake in HFL for RM480mil to expand fertiliser business
Hong Leong Bank chairman weighs options for stake in bank - sources
LSH Capital diversifies into construction business

Others Also Read