China's Central Bank Boosts Cash Supply with Significant Injection

China's central bank has pumped 234.6 billion yuan into the banking system through open market operations to ensure sufficient liquidity at the end of Q3. The People's Bank of China executed 7-day and 14-day reverse repos, injecting funds at specified interest rates to maintain stability.

In a strategic move to stabilize liquidity, China's central bank has injected a massive 234.6 billion yuan ($33.29 billion) into the banking system. The operation, which took place on Monday, was conducted through open market activities aimed at providing adequate cash towards the end of the third quarter.

The People's Bank of China (PBOC) detailed its approach, injecting 160.1 billion yuan using 7-day reverse repos at an interest rate of 1.70%. This action is part of a broader strategy to manage financial stability and ensure the smooth functioning of the banking sector.

Furthermore, the PBOC also added 74.5 billion yuan using 14-day reverse repos at an interest rate of 1.85%, a slight reduction from the previous rate of 1.95%. This move underscores the central bank's commitment to maintaining adequate liquidity as China's economy navigates various challenges. ($1 = 7.0474 Chinese yuan renminbi)

(With inputs from agencies.)