The People’s Bank of China says it will launch a 1.2 trillion yuan reverse repurchase operation

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BEIJING: China’s central bank said Sunday it would pump 1.2 trillion yuan (5.3 trillion baht) 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 (5.3 trillion baht) more than in the same period last year.

Virus deaths in China rise to 360, exceeding SARS mainland toll
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.

China saw economic growth of 6.1% 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.