Chinese central bank to inject $173 billion to economy as country fights coronavirus

WION Web Team
New Delhi Published: Feb 02, 2020, 02.23 PM(IST)

An employee measures a newly manufactured ball mill machine at a factory in Nantong, Jiangsu province, China June 28, 2019. Photograph:( Reuters )

Story highlights

The move will kick in the day that China's financial markets reopen, following an extended Spring Festival break.

China's central bank said Sunday it would inject 1.2 trillion yuan ($173 bln) into the economy as the country struggles to contain the deadly virus that is expected to hit the already slowing economy, news agency AFP reported. 

The People's Bank of China (PBOC) said in a statement it would launch a 1.2 trillion yuan reverse repurchase operation on Monday to maintain "reasonable and abundant liquidity" in the banking system, as well as a stable currency market, during the epidemic, the report added.

The statement added that the overall liquidity of the banking system would be 900 billion yuan ($129 bln) more than in the same period last year.

The move will kick in the day that China's financial markets reopen, following an extended Spring Festival break, the report added.

The virus death toll has climbed to 304 on Saturday even as the number of infected has crossed 14,300 nationwide 

On Saturday, the PBOC also announced a range of measures to step up monetary and credit support to enterprises which are helping in its fight against the virus epidemic, such as medical companies, the report said.

China's central bank urged financial institutions to provide "sufficient credit resources" to hospitals and other medical organisations, among other measures.

The move to inject liquidity into its financial system comes as the virus threatens to take a toll on an already slowing economy.

(With inputs from AFP) 

 

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