China’s Central Bank Injects Cash Into Money Market
China’s (FXI, quote) central bank continued cash injections into the money market through open market operations on Tuesday to ease liquidity.
China’s (FXI, quote) central bank continued cash injections into the money market through open market operations on Tuesday to ease liquidity.
China’s central bank on Monday pumped more money into the market to ease a liquidity strain.
China’s central bank, the People’s Bank of China (PBOC), injected 55 billion yuan (US$8.3 billion) into the money market on Tuesday to ease a liquidity strain.
China is exploring the creation of a mechanism that would use a band to guide the country’s interest rates, an approach aimed at giving the market a greater say in the financial system, a senior monetary official said on Sunday.
The yuan Thursday weakened for the 10th day against the US dollar as China’s central bank set the official reference rate at the lowest since 2011 following the US interest rate hike.
The People’s Bank of China (PBOC), the central bank, decided on Friday to cut the reserve requirement ratio (RRR) of banks, and benchmark interest rates.
Last week, the People’s Bank Of China allowed the yuan to fall sharply, causing chaos in share markets and drawing criticism from multinationals who said the move would hurt their businesses.
The central bank will use unconventional monetary tools such as re-lending and pledged supplementary lending to maintain relatively loose liquidity, rather than turning to conventional tools including lowering interest rates or the reserve requirement ratio, said Zhu Haibin, chief China economist at JPMorgan Chase & Co (JPM, quote).
The oil market appears to be locked in a sideways continuation pattern, however, the timing of a potential breakout may still hinge upon the trading floors opening for normal operations. The CME said late yesterday that Nymex floor trading would resume only when the city lifts its evacuation order for Zone A.
Markets are off to a positive start in the early week, with two key developments over the weekend seen as the primary drivers for the initial surge in risk correlated assets. The news that EU assistance to the Spanish banking sector in the amount of Eur100B has well exceeded estimates of most analysts, while Chinese data was not as bad as many had feared. Both of these developments have resulted in a market rally driven by the expectation that the global economy will continue to be supported by proponomics.