SHANGHAI, June 26 (Reuters) - The level of liquidity in China’s banking system will improve over the next few days, the central bank said on Tuesday.
The People’s Bank of China (PBOC) made the comment after it injected 80 billion yuan ($12.22 billion) via reverse bond repurchase agreements in open market operations to keep the level of liquidity “reasonable and ample” at the end of the year’s first half.
With increasing fiscal expenditures at the end of the month, total liquidity in the banking system will continue to improve in coming days after absorbing maturing reverse repos, the bank said on its website.
Fiscal expenditures are usually high in June, it added. ($1=6.5460 Chinese yuan) (Reporting by Winni Zhou and John Ruwitch; Editing by Clarence Fernandez)