China injects biggest cash in three years in financial system
Date
1/26/2016 4:28:16 AM
(MENAFN- Kuwait News Agency (KUNA)) TOKYO Jan 26 (KUNA) -- China's central bank pumped biggest cash injection into the money market on Tuesday to avoid a possible liquidity crunch ahead of a weeklong holiday.The People's Bank of China injected CNY 440 billion (USD 67 billion) into the financial system through reverse repurchase agreements the biggest one-day offering since February 2013.It is a process in which central banks purchase securities from banks with an agreement to resell them at a future date.The move follows a CNY 400 billion (USD 61 billion) injection by a same tool last Thursday. The central bank said earlier this month that it will flood the banking system with more than CNY 600 billion of funds to prevent a shortage of cash before the week-long Chinese New Year holiday which begins on February 7. (end) mk.nfm
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