China Digs Deeper Into Toolbag in Grapple With Investor Gloom
- Yuan is on brink of falling to weakest level since late 2007
- PBOC adds most cash with reverse repos since February
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Chinese policymakers moved to improve fragile market sentiment Wednesday with a step up in its recent support for the yuan and an injection of cash to the financial system.
The People’s Bank of China injected the largest amount of short-term cash since February one day after it slashed interest rates on a slew of monetary tools. Minutes before the liquidity addition, the central bank also offered the most forceful guidance to yuan traders since October via its daily reference rate for the managed currency.