China Is Pumping Cash to Fill a $456 Billion Liquidity Shortfall

The People’s Bank of China is boosting the supply of money available to banks to ensure they can meet the surge in demand for cash during the Lunar New Year holidays.

The central bank injected a total of 600 billion yuan ($86.4 billion) via 14-day repurchase agreements late last week, ending a two-month hiatus for such operations. Industrial Securities forecasts the PBOC to add as much as 3.5 trillion yuan of funds via similar tools before the holidays kick off on Sunday.