China’s Central Bank will try to ensure stability in the foreign exchange market on the background of the epidemic.
China’s Central Bank intends to support the country’s economy, suffered as a result of the outbreak of 2019 coronavirus-nCoV. On Monday, February 3, the markets will be displayed liquidity in the amount of 1.3 trillion yuan ($173 billion – ed.), reports the Chronicle.info with reference to the Correspondent.
It is noted that this would bring the total liquidity in the banking system will be 900 billion yuan higher than the same period of 2019.
The funds will be withdrawn through reverse REPO. This is a transaction where securities are purchased and simultaneously is an agreement for their sale back at a predetermined price.
Recently the media reported that China could lose $60 billion because of the epidemic of the coronavirus. While Beijing struggles to stop the virus before he has a chance to make a hole in the economy.