China central bank to pump $173 bn into economy in virus fight

BEIJING: China’s central bank said on Sunday it would pump 1.2 trillion yuan ($173 bn) into the economy as it ramps up support for a nationwide fight against a deadly virus that is expected to hit growth. The People’s Bank of China (PBoC) said in a statement it would launch a 1.2 trillion yuan reverse repurchase operation on Monday to maintain “reasonable and abundant liquidity” in the banking system, as well as a stable currency market, during the epidemic. It added that the overall liquidity of the banking system would be 900 billion yuan ($129 billion) more than in the same period last year. The move will kick in on the day that China’s financial markets reopen, following an extended Spring Festival break. The SARS-like virus which originated from the central Chinese city of Wuhan, has now infected over 14,000 people in the country and claimed more than 300 lives. — AFP