China Injects Bank Cash Before Holidays
Published / Last Updated on 21/01/2014
China Injects Bank Cash Before Holidays.
The People’s Bank of China has looked to stabilise its banks and economy by injecting undisclosed cash sums in its banking system.
This is all about liquidity as the Chinese head towards their largest holiday and festival celebration of the year, the Chinese Lunar New Year.
At this time, increased cash withdrawals are made as consumers take time out for celebration, spending huge sums.
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That said, this is a major problem for China anyway. Its economy is slowing down and China is now faced with the basic problem of managing a ‘supertanker’ economy and its cash flow.