PBOC injects 169bn yuan via reverse repos

SHANGHAI: China's central bank on Tuesday conducted 14-day reverse bond repurchase business worth 169 billion yuan ($27 billion), temporarily injecting cash into the money market amid a liquidity squeeze ahead of the Lunar New Year holiday, traders told Reuters.

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

The most important annual holiday in China typically sees Chinese withdrawing money from banks for celebrations, and companies paying year-end bonuses.