China’s central bank The People’s Bank of China (PBOC) has increased its short-term fund injection this week to meet higher cash demand that typically ensues towards the month-end.
In a statement PBOC said it has offered $7.71 billion (50 billion yuan) through seven-day reverse repos into the banking system on Friday in a third straight session.
Previously, the PBOC had usually injected a minimal 10 billion yuan during the month.
PBOC attributed the higher daily injection to “maintain stable liquidity conditions at the end of the month”.
This week the PBOC injected a net total of 120 billion yuan into the banking system, marking its biggest weekly injection since February.
($1 = 6.4809 Chinese yuan renminbi)