Chinese central bank will inject $ 173 billion into the growing virus economy
BEIJING: The central bank of China said on Sunday that it would inject 1.2 billion yuan ($ 173 billion) into the economy as support for a national fight against a deadly virus that is expected to reach growth increases.
The (PBOC) said in a statement that it would launch a reverse repurchase operation of 1.2 trillion yuan on Monday to maintain reasonable and abundant liquidity in the banking system, as well as a stable currency market, during the epidemic.
He added that the general liquidity of the banking system would be 900 billion yuan ($ 129 billion) more than in the same period last year.
The move will begin the day that China's financial markets reopen, after an extended break from the Spring Festival.
The virus has now infected more than 14,000 people in China and has claimed more than 300 lives.
On Saturday, the PBOC also announced a series of measures to intensify monetary and credit support to companies that are helping in their fight against the virus epidemic, such as medical companies.
The central bank of China urged financial institutions to provide sufficient credit resources to hospitals and other medical organizations, among other measures.
The movement to inject liquidity into your financial system occurs when the virus threatens to affect an economy that is already slowing.
China experienced economic growth of 6.1 percent last year, the slowest in about three decades. Analysts warn that this could be further weakened if the spread of the SARS-like virus continues for a prolonged period.