China central bank increases short-term cash injection to meet month-end demand

Man wearing a mask walks past the headquarters of the People’s Bank of China, the central bank, in Beijing

SHANGHAI (Reuters) – China’s central bank on Wednesday increased its short-term fund injection through open market operations to meet higher cash demand towards the month-end.

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The People’s Bank of China (PBOC) said it offered 50 billion yuan ($7.72 billion) through seven-day reverse repos into the banking system, whereas it mostly only injected 10 billion yuan each day during the month.

The central bank on its website said the move was to “maintain stable liquidity conditions at the end of the month”.

With 10 billion yuan worth of reverse repos maturing on Wednesday, the central bank has injected 40 billion yuan on a net basis on the day.

($1 = 6.4735 Chinese yuan)

(Reporting by Winni Zhou and Andrew Galbraith; Editing by Christopher Cushing)