China Just Juiced Its Banking System With A Record Amount Of Cash

People’s Bank of China provide massive liquidity through another round of reverse repurchase operation.

PBOC conducts a RMB50 billion of 14-day reverse repo at 3.45%, and RMB130 billion of 28-day reverse repo at 3.60%.  Rates are unchanged both operations compared with similar operations previously.  In total, PBOC provide RMB180 billion of liquidity today.

For the week, the PBOC has injected a net of RMB365 billion, highest weekly injection through open market operations ever on record. It is even higher than this year’s Chinese New Year. As we noted, PBOC is inadvertently performing “quantitative tightening“, which probably contributes to the unusually high stress in terms of liquidity.

china 58 billion

Source: PBOC

This article originally appeared here: People’s Bank of China’s weekly net liquidity injection hits record high
Also sprach Analyst – World & China Economy, Global Finance, Real Estate

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