PBOC Injects Record Liquidity Via New Tool as Yuan Limits Easing
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China’s central bank injected a record amount of cash into the financial system via a new tool in January, delaying more high-profile policy easing as it prioritizes stabilizing the yuan.
The People’s Bank of China conducted 1.7 trillion yuan ($234 billion) of so-called outright reverse repurchase agreements using three- and six-month contracts to keep liquidity ample, it said in a statement Monday. That’s the biggest operation since officials started the program in October as part of an overhaul of their policy toolbox.