SHANGHAI -- The Chinese central bank is using major cash infusions and other market operations as protection against further shocks to the global economy ahead of a politically important September.
The People's Bank of China injected 500 billion yuan ($78.2 billion) into the money market in the week ended Aug. 28. Funds supplied through routine open market operations came to 300 billion yuan, the largest amount in a week since the 375 billion yuan during the Jan. 20-24 period in 2014. Emergency short-term liquidity operations on Aug. 26 and 28 added another 200 billion yuan. The bank also decided Aug. 25 to cut both interest rates and the reserve ratio for Chinese banks.