PBoC to place $16bn in deposits

The People’s Bank of China (PBoC) is set to place US$16 billion (RMB100 billion) in deposits this month with banks, the largest monthly total since November 2012, Bloomberg reported, citing statements made Thursday on the Ministry of Finance’s website. The central bank plans to auction US$8 billion of 6-month treasury deposits on July 11 and another US$8 billion of 3-month treasury deposits on July 18 to commercial lenders, under the ministry’s directive. This move by Beijing will give banks cash for credit, a move applauded by UBS Chief China Economist Tao Wang. A cash crunch last week led to a spike in the interbank lending rate, sending markets into turmoil.