China’s Central Bank Injects Liquidity Into Market

China’s Central Bank Injects Liquidity Into Market

China’s Central Bank Injects Liquidity Into Market

China’s central bank Monday pumped money into the inter-bank market to provide more liquidity.

The People’s Bank of China (PBOC) put RMB 50-B (around US$7.6-B) into 7-day reverse repos, a process by which central banks purchase securities from banks with an agreement to sell them back in the future.

The reverse repo was priced to yield 2.25%, according to a PBOC statement.

The central bank has adopted repos and other liquidity operations to ease money shortages in the market more frequently this year, rather than cuts in interest rates or the RRR (reserve requirement ratio).

On Monday’s interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor) stayed flat at 1.996%.

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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