China’s central bank used its open-market operations to boost the supply of cash in the financial system after demand driven by tax and dividend payments pushed the overnight money rate to a four-week high. Bloomberg reports the People’s Bank of China added a net 40 billion yuan through reverse-repurchase agreements on Friday, bringing this week’s injections to 510 billion yuan ($75.4 billion), the most in six months. The monetary authority was also said to have added funds through some commercial lenders Wednesday. The nation’s interbank funding costs rose last week amid signs the government is in no hurry to let up on its efforts to reduce borrowing levels. Authorities will actively prevent and resolve systemic financial risks, and ramp up efforts to reduce leverage in the economy, the official Xinhua News Agency reported, citing President Xi Jinping at a high-profile conference earlier in July.
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