PBOC Conducts 60 Billion Yuan China Open-Market OperationsBloomberg News
Central bank injected record amount of funds last week
Demand for money jumps before the Lunar New Year holidays
China’s central bank added funds to the financial system through open-market operations on Sunday, after injecting a record amount of cash last week and offering liquidity support to some lenders.
The monetary authority added a net 60 billion yuan ($8.7 billion) using 14-day and 28-day reverse-repurchase agreements. There are no contracts maturing Sunday. The People’s Bank of China pumped in a net 1.13 trillion yuan last week.
Demand for money jumps before the Lunar New Year holidays, also known as the Spring Festival, as families prepare to exchange gifts and meet for feasts. The holiday runs from Jan. 27 through Feb. 2 this year. The authority said Friday that it provided a 28-day temporary liquidity facility to some major commercial banks.
China’s money market has drawn global attention in recent months, with the People’s Bank of China guiding short-term interbank rates higher to dissuade people from using borrowed funds to buy assets such as bonds.
— With assistance by Yuling Yang, and Hui Li