PBOC says it will will inject cash via outright reverse repos for the second time
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The People's Bank of China Friday announcement:
- to inject 400 billion yuan into its banking system via outright reverse repos on June 16
- six months tenor
Last week the Bank injected 1 trillion yuan in reverere repos in the 3-month tenor
- the injections aim to offset the record 4 trillion yuan in interbank negotiable certificate of deposit (NCD) maturities this month
- upcoming liquidity demands will likely require further injections by the PBOC,
The background to this is that the PBoC has been very carefully managing the liquidity conditions this year to aid the broad economy.
This article was written by Eamonn Sheridan at www.forexlive.com.