China Adds Market Support With More Cash, Strong Yuan Fix

PBOC net injects most cash in year via open market operations
Onshore yuan again stronger than 7 per dollar after Monday dip

WATCH: Hayden Briscoe of UBS Asset Management discusses China's efforts to support the economy and markets amid the coronavirus outbreak.(Source: Bloomberg)

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By Tian Chen and Livia Yap

February 3, 2020 at 11:57 PM UTC

Updated on

February 4, 2020 at 9:17 AM UTC

This article is for subscribers only.

China’s central bank helped steady the country’s markets Tuesday, a day after a post-holiday plunge for equities and the currency amid the coronavirus’ continued spread.

The People’s Bank of China pumped 400 billion yuan ($57 billion) into the banking system with reverse repurchase agreements on Tuesday, marking the largest single-day addition since January 2019. It also set the yuan’s reference rate stronger than the currency’s official close on Monday and the key 7 level.