Central bank continues fund injection

Source: Xinhua | January 28, 2016, Thursday |

Online Edition

China's central bank has made a big injection of funds into the financial system for the second time this week to ease a short-term liquidity strain before the Lunar New Year holiday.

The People's Bank of China (PBOC) pumped 260 billion yuan (US$39.7 billion) into markets through 28-day reverse repurchase agreements (repo) and 80 billion yuan of seven-day reverse repo, a process in which central banks purchase securities from banks with agreements to resell them in the future.

The injection, following Tuesday's 440-billion-yuan reverse repo operations, the largest single-day liquidity injection in three years, has resulted in a net 590 billion yuan being pumped into the market this week.

The 28-day reverse repo was priced to yield 2.6 percent while that of the seven-day reverse repo was 2.25 percent, unchanged from Tuesday's operations, according to a PBOC statement.

In Thursday's interbank market, the overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one other, fell slightly to 1.992 percent.

China's financial markets and business operations will be closed from Feb. 7 to 13 for the Lunar New Year holiday, when a surge in cash demand is expected because of travel expenses and holiday shopping. The PBOC usually pumps extra funds into the financial system ahead of the holiday.

Business

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Central bank continues fund injection

Email this to your friend