Good timing.
From Bloomberg, January 27:
PBOC Injects Record Liquidity Using Its New Tool, Delays RRR Cut
China’s central bank injected a record amount of cash into the financial system via a new tool in January, delaying more high-profile policy easing as it prioritizes stabilizing the yuan.
The People’s Bank of China conducted 1.7 trillion yuan ($234 billion) of so-called outright reverse repurchase agreements using three- and six-month contracts to keep liquidity ample, it said in a statement Monday. That’s the biggest operation since officials started the program in October as part of an overhaul of their policy toolbox.The reliance on the new open-market monetary tool is emblematic of the PBOC’s efforts to keep money flowing through the banking system while pursuing its conflicting goals of supporting growth and defending the yuan.
The central bank has suspended another new program it uses for liquidity management by halting its government bond purchases this month. The move was likely an attempt to avoid fueling a record-breaking slide in yields that has undermined the currency and weighed on confidence....
....MUCH MORE
