China’s central bank said Sunday it would pump 1.2 trillion yuan ($173 bln) into the economy as it ramps up support for a nationwide fight against a deadly virus that is expected to hit growth.
The People’s Bank of China (PBOC) said in a statement it would launch a 1.2 trillion yuan reverse repurchase operation on Monday to maintain “reasonable and abundant liquidity” in the banking system, as well as a stable currency market, during the epidemic.
It added that the overall liquidity of the banking system would be 900 billion yuan ($129 bln) more than in the same period last year. The move will kick in the day that China’s financial markets reopen, following an extended Spring Festival break.