PBOC to set up a temporary liquidity facility for Lunar New Year

The PBOC skipped open market operations (OMOs) for the sixth straight session today, while draining a net CNY 30 billion in OMOs.

On Friday, the Chinese central bank, PBOC, sets USD/CNY central rate at 6.5342 versus Thursday’s 6.5412.

The Bank also announced it would set up a temporary liquidity facility for Lunar New Year, which will provide commercial banks with more cash available ahead of the approaching Lunar New Year.

Key Headlines:

Allows banks to temporarily keep fewer reserves with the PBOC.

Some banks will be allowed to lower their reserve requirement ratios by up to 2% for 30 days.