China’s Central Bank to Ensure Liquidity, Xinhua Says

China’s central bank pledged to ensure adequate availability of cash in the financial system by using tools including reductions in the reserve-requirement ratio, state media reported.

Authorities will “appropriately take targeted liquidity management actions” based on circumstances including foreign-capital inflows and funding demand, the official Xinhua News Agency said in a report late yesterday on an interview with an unidentified person at the People’s Bank of China. Options include adding cash through reverse-repurchase operations and cutting required reserves, Xinhua said.