China central bank makes biggest weekly cash injection in two months

SHANGHAI  – China’s central bank made its biggest weekly liquidity injection into the banking system in nearly two months to counteract the year-end rush for cash.

The People’s Bank of China (PBOC) injected a total of 205 billion yuan ($29.36 billion) via open market operations on Friday, including 2 billion yuan through the seven-day tenor and 203 billion through the 14-day tenor, according to an online statement.

The PBOC attributed the liquidity offerings to “maintaining steady year-end liquidity level”.

With 41 billion yuan worth of reverse repos maturing on Friday, the PBOC injected a net 164 billion yuan on the day. And it brought the weekly cash offerings to a net 704 billion yuan, the biggest since late October.

($1 = 6.9829 Chinese yuan)