China ramps up liquidity injection as geopolitical tensions rise

Chinese central bank aims at keeping liquidity stable at month-end, injecting $45.8B into financial system

By Aysu Bicer

ANKARA (AA) - China's central bank on Friday injected more liquidity into the country's financial system in a move to support its financial system amid geopolitical tensions due to the Ukraine crisis.

The People's Bank of China (PBOC) made a net 290 billion yuan ($45.8 billion) injection via seven-day reverse repurchase agreements, the biggest weekly cash offering since January 2020, to keep liquidity stable at the end of the month.

The PBOC had been injecting cash over the past two weeks, with the total amount standing at 760 billion yuan (nearly $120 billion) on a net basis.

Stock markets suffered a historic crash on Thursday with major indices around the world taking massive losses. This was due to rising risks in the financial sector after Russia launched a military intervention in Ukraine.

Russian President Vladimir Putin announced the operation early on Thursday, days after recognizing two breakaway enclaves -- Donetsk and Luhansk -- in eastern Ukraine, drawing international condemnation and vows of tougher sanctions on Moscow.

On the first day of the operation, more than 130 people, including civilians, were killed, according to Ukrainian President Volodymyr Zelenskyy.

Kaynak:

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