China’s central bank injected funds into the money markets on Tuesday for the first time since February, easing fears of a repeat of the panic in June when cash markets were squeezed.
The People’s Bank of China pumped 17bn yuan (£1.8bn) into markets through seven-day reverse bond repurchase agreements.
The bank made the liquidity injection after allowing a credit crunch to happen in late June as a warning against risky lending practices.
It set the reverse rate to be paid at 4.4%, much higher than the last official guidance of 3.35%.
via The Guardian
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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