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19 Dec 2013
China conducts short term liquidity operation after interbank rates soar
FXstreet.com (Łódź) - The People's Bank of China provided en emergency liquidity injection to financial institutions on Thursday, following an excessive increase in interbank rates.
The central bank injected of 200 billion yuan into financial markets in an attempt to prevent another credit crunch. Earlier this year, on June 20, the 7-day repurchase rate grew by 270 basis points to 10.77% and the bank conducted a short-term liquidity operation in order to bring it down.
The monetary authority assured in their Weibo profile that they are ready to supply liquidity to banks when the need arises.
The central bank injected of 200 billion yuan into financial markets in an attempt to prevent another credit crunch. Earlier this year, on June 20, the 7-day repurchase rate grew by 270 basis points to 10.77% and the bank conducted a short-term liquidity operation in order to bring it down.
The monetary authority assured in their Weibo profile that they are ready to supply liquidity to banks when the need arises.