PBoC injects liquidity following market rout
Reverse repo operation helps to restore semblance of calm to markets
The People's Bank of China (PBoC) injected a large dose of liquidity into the economy today (January 5), following a market slump that stopped trading on stock markets a day earlier.
The central bank injected 130 billion yuan ($20 billion) via reverse repos, according to an announcement on its website. The repos have a maturity of seven days and carry an interest rate of 2.25%.
It was the PBoC's largest reverse repo operation since September 2015. Last summer and early autumn saw large
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