China Boosts Cash Injection Into Banking System Before Month-End

  • PBOC injects 100 billion yuan via reverse repo operation
  • China’s 7-day repo rate rises to highest since January 30

The People's Bank of China (PBOC) in Beijing.

Photographer: Andrea Verdelli/Bloomberg
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China’s central bank boosted its short-term liquidity injection in anticipation of cash tightness ahead of month end.

The People’s Bank of China increased its cash injection via reverse repos to 100 billion yuan ($15.8 billion). That resulted in a net injection of 90 billion yuan. The PBOC had been draining cash in the last two weeks, which is routine following the Lunar New Year holidays.