Chinese central bank to pump USD 173 bln to economy in virus boost

China's central bank said Sunday it would pump 1.2 trillion yuan (USD 173 bln) into the economy as it ramps up support for a nationwide fight against a deadly virus that is expected to hit growth.

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.

It added that the overall liquidity of the banking system would be 900 billion yuan (USD 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 virus has now infected over 14,000 people in China and claimed over 300 lives.

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.

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.

China saw economic growth of 6.1 percent last year, the slowest in around three decades. Analysts are warning this could weaken further if the spread of the SARS-like virus goes on for an extended period.


(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel