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PBOC To Increase Liquidity Injection This Week

CHINA PRESS
MNI (Singapore)

The People’s Bank of China will likely increase liquidity via open market operations to offset the maturity of a total CNY2.17 trillion of reverse repos this week, the Shanghai Securities News reported citing analysts. Liquidity remains tight in recent months following the issuance of special refinancing bonds for local government debt swaps and CNY1 trillion of China Government Bonds. The PBOC will likely resort to increasing reverse repos and medium-term lending facilities, and the funding situation may continue in a tight balance as policymakers fret funds lingering around financial institutions without flowing into the real economy.

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