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China Conducts First Reverse Repos in a Year as Outflows Pick Up

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China’s central bank used short-term tools it hasn’t employed in a year to address a seasonal cash squeeze that’s being exacerbated by capital outflows.

The People’s Bank of China used reverse-repurchase agreements to inject 50 billion yuan ($8.05 billion), it said in a statement Thursday. The central bank also rolled over 269.5 billion yuan of three-month loans extended to lenders in October and used the medium-term lending facility to add a further 50 billion yuan to smooth supply before the Lunar New Year holiday, it said late Wednesday. An auction of 50 billion yuan of six-month treasury deposits also added cash today.