(28 September 2012 – China) The People’s Bank of China (PBoC) injected a record 365 billion yuan (A$57.9 billion) into the financial system on Thursday, helping ease demand for cash before a week-long holiday beginning 1 October.The record amount was injected via reverse-repurchase operations and bill redemptions this week, the most since Bloomberg started compiling the data in 2008, compared with 101 billion yuan last week.
The monetary authority offered 130 billion yuan of 28-day reverse repo agreements and 50 billion yuan of 14-day contracts today, according to a statement. China’s financial markets will be shut next week for the National Day and mid-autumn holidays.
The flood of cash into the market meant basis point drops in the floating seven-day repurchase rate and the seven-day repurchase rate.