CENTRAL BANK INJECTS CASH TO BANKS

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(0118 CR M19)CENTRAL BANK INJECTS CASH TO BANKSDATELINE: Jan. 18, 2012LENGTH: 00:00:53CATEGORY:ECONOMYPKGINTROThe People's Bank of China (PBOC), or the central bank, has injected cash into banks to ease a liquidity squeeze ahead of Chinese Lunar New Year Holiday.PKGThe injection is about 26.7 billion U.S. dollars.It was conducted on Tuesday through 14-day reverse repurchase agreement (repo) operations.Reverse repo is a process of central bank purchasing securities from banks with an agreement to resell them at future dates.Its yield stood at 5.47 percent, well exceeding the benchmark interest rate of 3.5 percent for one-year deposits.The liquidity of Chinese banks shows signs of tense, as demands for cash soared ahead of the week-long Lunar New Year holiday, which begins on Sunday.Money withdrawals usually surge before the most important traditional Chinese holiday, as celebrations and year-end bonuses are costly.Tag:Before the central bank's latest move to ease the money market, it ha
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Producer : Xinhua News Agency

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