China's Central Bank Pumps Near-Historic Level of Cash Into Financial System

  • PBOC net injection via reverse repo second highest in history
  • Operation to offset impact of MLF maturity, tax payment: PBOC
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China’s central bank pumped a near-historic amount of short-term funds into its financial system on Wednesday, dialing up liquidity support amid a cash squeeze with the new year holiday looming.

The People’s Bank of China injected a net 958.4 billion yuan ($131 billion) of cash via seven-day reverse repurchase agreements in daily open market operations, the second highest on record in data compiled by Bloomberg going back to 2004.