PBOC to conduct reverse repo on Tuesday and Thursday

SHANGHAI: The People's Bank of China (PBOC) will conduct reverse repurchase business on Tuesday and Thursday to inject funds into the market ahead of the week-long Lunar New Year next week, traders said on Monday.

The PBOC asked banks about demand for reverse repos of 14 days in duration, traders said.

The central bank announced earlier this month that it would suspend bill sales and conduct reverse repo business to meet a cash shortage.

The most important holiday in China typically sees Chinese withdrawing money from banks for celebrations.