China Adds Most Cash in Open Market Operations Since January
- PBOC put $40 billion into the financial system Thursday
- Seven-day repo rate slumps most since July following injection
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China’s central bank injected the most liquidity via open-market operations since January, in a push to ensure ample cash supply ahead of seasonal tightness at year-end.
The People’s Bank of China added 280 billion yuan ($40 billion) into the financial system with 7 and 14-day reverse repurchase agreements Thursday, while keeping the interest rates unchanged. That came after the authorities restarted such operations after a 20-day hiatus on Wednesday. The overnight repo rate -- an indicator of interbank liquidity -- plunged the most in a month, while the benchmark seven-day tenor saw its biggest decline since July.