Arab Today, arab today china continues cash injections into money market
Last Updated : GMT 21:50:13
Arab Today, arab today
Arab Today, arab today

China continues cash injections into money market

Arab Today, arab today

Arab Today, arab today China continues cash injections into money market

China's central bank
Beijing - XINHUA

China's central bank pumped another 120 billion yuan (nearly 19 billion U.S. dollars) into major commercial banks and brokerages via reverse repurchase agreement (repo) on Thursday.

It is the second reverse repo this week after the People's Bank of China (PBOC) unexpectedly put the same amount of liquidity into the market on Tuesday. The first marked the largest single-day cash injection since Jan. 2014.

The yield for the seven-day reverse repo still stood at 2.5 percent, according to a PBOC's statement.

Under a reverse repo, the central bank purchases securities from large banks and brokerages with the agreement to sell them in the future as an effective means to tackle short-term money shortage in the market.

Taking into account earlier reverse repos worth 90 billion yuan due on Tuesday and Thursday, the PBOC has made net money injections of 150 billion yuan this week, markedly up from 5 billion yuan a week ago.

In addition, another 110 billion yuan was put in place on Wednesday by the central bank through medium-term lending facility, also a tool designed for banks to borrow from the central bank by using securities as collateral.

Liquidity in the money market has tightened recently due to dropping new yuan funds outstanding for foreign exchange and a depreciating Chinese yuan.

The overnight Shanghai Interbank Offered Rate (Shibor), a key barometer for interbank lending in China, climbed to 1.83 percent on Thursday, up from around 1.4 percent at the end of July, despite the central bank's easing tools.

Analysts recognized the necessity of such measures and expects more powerful policies.

Should the cash crunch linger, the PBOC will not hesitate to lower banks' deposit reserve requirement in a bid to offset possible negative impacts on the real economy, Shenwan Hongyuan Securities said in a research note.

Zhu Haibin, chief economist of J.P. Morgan China, said a cut in the reserve requirement ratio is more likely than a cut in the interests rates in the third quarter.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china continues cash injections into money market Arab Today, arab today china continues cash injections into money market

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china continues cash injections into money market Arab Today, arab today china continues cash injections into money market

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today How to do your own Ramadan corner?

GMT 15:53 2017 Saturday ,27 May

How to do your own Ramadan corner?

GMT 17:28 2017 Thursday ,18 May

Saudi stocks rise in heavy trading

GMT 21:37 2017 Wednesday ,17 May

US Stocks Close Mixed

GMT 04:58 2017 Wednesday ,17 May

Tadawul index gains 0.7%

GMT 06:20 2017 Tuesday ,16 May

Tadawul index climbs 0.6%

GMT 13:43 2017 Monday ,15 May

Oman share index declines marginally
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday