China injects $500B yuan into banking system amid coronavirus crisis

China's central bank injected 500B yuan ($71.21B) worth of liquidity into the banking system Tuesday via reverse repurchase agreements after offering a large amount of funds a day early

BEIJING - -China's central bank injected 500 billion yuan ($71.21 billion) worth of liquidity into the banking system Tuesday via reverse repurchase agreements after offering a large amount of funds a day early.

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The People's Bank of China said it offered CNY380 billion of funds via seven-day reverse repo and CNY120 billion via 14-day repo. Interest rates of the reverse repos remain unchanged after the PBOC cut the rates by 10 basis points on Monday.

After an extended Lunar New Year holiday, the central bank had injected CNY1.2 trillion worth of liquidity on Monday via reverse repo to encourage more lending to businesses struggling with the outbreak of a deadly coronavirus and the government's measures to prevent the spread of the virus.

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