China’s central bank Wednesday injected a record net 560 billion yuan ($83 billion) into the banking system through open-market operations in a move to expand liquidity amid slowing economic growth.
The People’s Bank of China said it would carry out reverse repos that pump 570 billion yuan into the financial system Wednesday, while 10 billion yuan of previous reverse repos will mature the same day.
The 560 billion yuan net injection is the highest ever recorded for a single day.
“At the peak of the tax season, the total liquidity of the banking system is falling rapidly,” the central bank said in a statement.
Chinese authorities have taken a raft of measures since last year, including expanding infrastructure spending, cutting taxes and reducing bank reserve requirements, to bolster an economy suffering from slowing growth amid a trade war with the U.S.
Wednesday’s injection came after the central bank announced cuts in banks’ reserve ratios earlier this month, which will free up a total of $116 billion for new bank lending.