China Adds $71 Billion in Cash in Past Week to Calm Nerves
- PBOC has net injected funds for the past five working days
- Cost of borrowing overnight has fallen to lowest since July
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China’s central bank continued to pump liquidity into the financial system on Friday as policy makers sought to avoid contagion stemming from China Evergrande Group spreading to domestic markets.
The People’s Bank of China has injected a net 460 billion yuan ($71 billion) of short-term cash into the banking system in the past five working days, including 70 billion yuan on Friday. That’s helping ensure sufficient liquidity throughout the Evergrande crisis, as well as meet extra demand for funds before China’s week-long holiday at the start of October. The cost of borrowing overnight fell to 1.68%, the lowest level since late July, down from 2.28% last week.