Thursday, September 21

China central bank raises cash injection to keep liquidity stable at end of half year

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SHANGHAI — China’s central bank on Friday increased the injection of liquidity into the banking system through open market operations, as demand for cash for the end of the first half of the year started to pick up.

The People’s Bank of China (PBOC) injected 60 billion yuan ($8.96 billion) worth of seven-day reverse repos on Friday, having injected 10 billion yuan each day for the past 50 days.

Friday’s operation was meant to keep “half year-end stable liquidity,” the PBOC said in a statement.

For the week, the central bank injected a net 50 billion yuan on a net basis, showed Reuters’ calculation based on official data. ($1 = 6.6980 Chinese yuan) (Reporting by Winni Zhou and Brenda Goh; Editing by Christopher Cushing)