SHANGHAI - In order to prevent the outflow of capital during the celebration of the New Year according to the lunar calendar, the PBOC continues to pour huge amounts of cash into the financial system of the country. This week, the amount of inflows reached a peak in the period of almost three years.
On Thursday, the Bank of China had reverse repurchase operations for a period of seven days, pouring into the financial system of 340 billion yuan ($ 51.9 billion). On Tuesday, using similar tools provided by the NBK banks in the country 440 billion yuan.
Given the volume of debt with expired maturity (190 billion yuan), the total amount of short-term financial investments of the Central Bank of China in the country's economy this week amounted to 590 billion yuan ($ 90.06 billion), the highest since early February 2013, when the figure reached 662 billion yuan.
Last week, the NSC will offer banks short-term and medium-term loans worth more than 1.5 trillion yuan.
These actions are part of the bank to meet the growing demand and, as a rule, take place on the eve of the Lunar New Year, which starts on 7 February.
Cash infusion also seek to stop the outflow of capital: investors' concerns about China's economy grows, so since the beginning of this year, the country's main stock market has lost almost 23%.