China Injects Record Amount of Cash This Week Before Holidays

The large cash infusion is expected to ease China’s benchmark seven-day money-market rate, which rose to the highest in nearly a month this week. Photo: Bloomberg

(Bloomberg) — China’s central bank has pumped a record amount of short-term cash into the banking system this week as demand rose following the removal of Covid restrictions and ahead of the Lunar New Year holidays.

The People’s Bank of China added a net 1.97 trillion yuan ($291 billion) of cash this week via open market operations, a record high, according to data compiled by Bloomberg. That’s more than nine times the size of last week’s injection.