PBoC injects ¥958.4 billion in cash, second largest cash injection in history

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Link Secutities | The People’s Bank of China (PBoC) today injected a net cash amount of ¥958.4 billion via 7-day reverse repurchase agreements in its daily open market operations. This is the second-largest-ever cash injection, according to Bloomberg. The operation is aimed at offsetting the impact of maturing medium-term lending facilities (MLF), as well as coping with higher demand for cash ahead of the Lunar New Year holidays, and peak tax season pressures. Earlier this week, a liquidity shortage pushed the seven-day interbank funding rate to its highest level in almost a year. These purchase agreements replaced the expiration of about ¥955 billion in MLFs.

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