Central Bank China, 173 billion liquidity

(ANSA) - BEIJING, FEB. 2 - The Chinese central bank (PBOC) has announced the maxi injection of liquidity on the markets for 1,200 billion yuan (173 billion dollars) to support the economy when the country struggles to overcome the crisis of the new coronavirus which it has resulted in 304 victims so far. The operations, explained People's Bank of China in a statement, will take place tomorrow when the financial markets reopen after the long break of the Lunar New Year. The operations, explained the Central Bank, will take place with the "reverse repo" formula, that is to say through the purchase of assets on supermarkets with the agreement on their resale at a higher price in the predetermined future. The aim, as has been repeated several times in recent days, is to maintain "reasonable and abundant liquidity" in the banking system, as well as to guarantee the stability of the currency markets, in the midst of the disturbances caused by the new coronavirus.