PBOC Injects USD7.4 billion Into Financial System
Tang Shihua
/SOURCE : yicai

(Yicai Global) Jan. 31 -- China's central bank  injected a fresh round of funds into the country's financial system  today to maintain liquidity at a "reasonably ample" level ahead of the  Chinese New Year holiday. 

The People's Bank of China conducted a 14-day  reverse repo today to the tune of CNY50 billion (USD7.4 billion) against  no maturing previous reverse repos.

It conducted the same scale of open market operation yesterday after seven working days of inactivity.

The 14-day rate was offered at 2.7 percent, unchanged from the previous open market operations.

The move pushed most Shanghai Interbank Offered  Rates lower, though the overnight SHIBOR was still up 23.59 basis points  at 2.2380 percent, indicating a short-term liquidity squeeze as the  holiday approaches.

The one-week term SHIBOR rate fell 0.90 basis point  to 2.7560 percent while the one-month rate fell 0.1 basis point to  2.8390 percent.

Follow Yicai Global on
Keywords: PBOC , Open Market Operation , Cash Injection , Reverse Repo , Shibor