PBOC Injects $8B into China's Banking System (FXI)

The People's Bank of China (PBOC) employed rarely-used tools aimed at injecting more cash into its financial system ahead of China's Lunar New Year.

The PBOC said it used reverse-repurchase agreements to inject about RMB 50 billion (about $8.05 billion) into banks, while also rolling over RMB 269.5 billion of three-month loans which were extended to lenders last October. There was also an auction of RMB 50 billion of six-month treasury deposits to further fill coffers.

Bloomberg noted today that the rolling over of loans indicates that China will not conduct a broad easing measure used during the first quarter.

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