China money-market rate drops to 6-week low

FXStreet (Mumbai) - China’s benchmark money-market rate fell to the lowest in more than six weeks as the central bank increased the frequency of its open-market operations to ensure cash availability before next month’s holidays.

As Bloomberg notes, “The People’s Bank of China added 100 billion yuan ($15 billion) via reverse-repurchase agreements Friday, taking this week’s injection to a record 690 billion yuan. The authority will conduct the operations daily between Jan. 29 and Feb. 19, except for the Lunar New Year holidays on Feb. 7-13, according to a statement posted on its website Thursday.”

The seven-day repurchase rate, a gauge of funding availability in the financial system, dropped 9bps to 2.22%, the lowest since Dec. 15