China's Central Bank Bolsters Liquidity
329 sats \ 5 comments \ @TomK 16 Jul econ
In an effort to maintain sufficient liquidity, China's central bank has made its largest cash injection into the banking system since January. On Tuesday, the People's Bank of China (PBOC) infused 674 billion yuan ($93 billion) through reverse repurchase operations, countering the liquidity strain from ongoing tax payments.
This significant move comes as China’s leadership convenes to discuss the nation’s economic direction which indicates rising trouble as we saw yesterday. The PBOC aims to ensure banking liquidity remains ample during this critical period.
Amid heightened scrutiny of China's money markets, the PBOC is also contemplating a shift to a single key short-term policy rate. The proposed system, anchored on the seven-day repurchase rate, could potentially replace the medium-term lending facility as the new benchmark.
July’s tax season exerts substantial pressure on interbank liquidity, necessitating increased injections from the PNoC.
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56 sats \ 1 reply \ @BitcoinAbhi 17 Jul
China needs more support for Yuan around the world before thinking that it can sustain another blow!
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13 sats \ 0 replies \ @TomK OP 17 Jul
and to gain this confidence, the central bank is pumping its balance sheet full of gold. let's see to what extent this works. personally, I wouldn't trust the Chinese one iota
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66 sats \ 0 replies \ @Satosora 16 Jul
It was only a matter of time before this started happing. I thought it would be smaller chunks over timr, but they are trying in one fell swoop. Dont think it will work as well as they planned because the debt is higher than they realize.
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45 sats \ 1 reply \ @Coinsreporter 17 Jul
These cash injections are like pain relievers. They are not the cure of this Chinese disease.
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13 sats \ 0 replies \ @TomK OP 17 Jul
the cure for the Chinese problem of artificially inflating the real estate market, for example, to prop up the economy, is actually extremely complex in view of the nation's demographic problems. there is also the problem of the Communist Party's centralized power: it is in the saddle as long as the promise of eternal economic advancement for the broad masses is fulfilled. if this does not succeed, this power structure will also fall into disarray
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