SHANGHAI, March 31 (Reuters) – China’s central bank made the biggest weekly liquidity injection in more than two months this week to counteract higher quarter-end demand for cash.
The People’s Bank of China (PBOC) injected 189 billion yuan ($27.51 billion) worth of seven-day reverse repos in open market operations on Friday.
With 7 billion yuan worth of such short-term liquidity instrument due on the same day, the PBOC injected a net 182 billion yuan on the day.
It also added a net 811 billion yuan to the banking system for the week, the highest since mid-January, according to Reuters calculation. ($1 = 6.8710 Chinese yuan)
Reporting by Winni Zhou and Brenda Goh Editing by Shri Navaratnam