China central bank resumes 14-day reverse repos to smoothen year-end cash demand

SHANGHAI (Reuters) – China’s central bank resumed injecting short-term cash through 14-day reverse repos for the first time in three months on Monday, as it steps up efforts to smoothen increasing year-end liquidity demand.

The People’s Bank of China (PBOC) injected a total of 244 billion yuan ($34.28 billion) through reverse repos in open market operations, including 184 billion yuan through the seven-day tenor and 60 billion yuan via the 14-day tenor.

The resumption of lending via 14-day reverse repos to financial institutions was the first such injection since late September.

The central bank said Monday’s operation was meant to “keep year-end liquidity conditions reasonably ample,” according to an online statement.

($1 = 7.1179 Chinese yuan)

(Reporting by Shanghai Newsroom; Editing by Jacqueline Wong)