The People’s Bank of China (PBOC) on Monday made its biggest daily cash injection into the banking system via open market operations in nearly three months as demand for cash rose towards the end of the first half of the year.
China’s central bank injected 100 billion yuan ($14.95 billion) worth of seven-day reverse repos, the biggest daily injection via the liquidity tool since March 31.
The central bank said the operation was to keep “half year-end liquidity stable,” according to an online statement.
The PBOC started pumping more cash into the financial system last Friday.
Demand usually surges towards the end of the quarter, when commercial banks also have to shore up cash positions for an administrative quarterly health check by the central bank.
With 10 billion yuan worth of such reverse repos due on Monday, the PBOC net injected 90 billion yuan on the day.
- Reuters with additional editing by Sean O’Meara
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