Latest News:  
Beijing   Light snow/Overcast    -1 / -6   City Forecast

People's Daily Online>>China Business

PBOC halts bill issue before Lunar New Year

(Xinhua)

11:52, January 07, 2012

BEIJING - The People's Bank of China (PBOC), the country's central bank, said Friday it will suspend sales of bills in the open market to ensure bank liquidity ahead of the week-long Lunar New Year holiday in late January.

The PBOC said it will conduct short-term reverse-repurchase agreement operations "if necessary" to inject money into banks through purchases of securities with an agreement to resell them at future dates, according to a statement posted on its website.

"The central bank's move to suspend bill sales is intended to prevent a tightening of liquidity in the banking system," said Professor Guo Tianyong, director of the Banking Research Center at the Central University of Finance and Economics.

Increasing demand for cash ahead of the Lunar New Year has already begun to squeeze banks' liquidity.

The PBOC suspended open market operations for two weeks after its last sales of one-year bills for 2011 on Dec 27.

The central bank injected 51 billion yuan ($8.07 billion) into the banking system this week, the biggest liquidity injection in two months, to help banks meet customers' soaring demand for cash during the holiday.

【1】 【2】

Email|Print|Comments(Editor:张茜)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Here be dragons

  2. 'Cradle of Chinese Buddhism' embraces world

  3. Surface area of Poyang Lake shrinks to less than 200 square km

  4. U.S. Navy rescues 13 Iranians taken hostage by Somali pirates

Most Popular

Opinions

  1. Greater say needed on yuan's convertibility
  2. Much ado about new stamps and dragons
  3. China takes frank, open stand on Myanmar issue
  4. Pentagon plan changes game in Asia
  5. Will Japan's economy recover in 2012?
  6. It is the China naysayers who are doomed to fail
  7. Common development with neighbors
  8. Japan's case of flawed priority
  9. Move to send 'alarming signal' across Asia
  10. EU's airline carbon tax may backfire

What's happening in China

Diplomat: China stresses ties with neighbors

  1. Writers set to take on Apple in copyright fight
  2. China to share housing info online
  3. Homicide, robbery suspect wanted
  4. Swill oil found in no city restaurants
  5. Buffett to welcome Chinese New Year in song

PD Online Data

  1. Traditional Mooncakes
  2. About Mooncakes
  3. History of Mooncakes
  4. Modern Mooncakes
  5. Legends of Mid-Autumn Festival