PBOC injects $4.8 Billion To Ease Liquidity Concerns

China’s central bank has pumped RMB29 billion ($4.8 billion) of money into the financial system, its first market-wide injection in three weeks, as it looks to put an end to the cash crunch that has rattled the economy.

Chinese banks have been hoarding money, charging each other nearly 9 percent to borrow cash in a near doubling of rates from just one week earlier, a sign of extreme stress in the interbank market.

Over the past week the central bank had provided targeted money to cash-strapped lenders but it had yet to offer any liquidity via its open-market operations, a more transparent and powerful channel for influencing the financial system.

CNBC

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