China’s central bank to pump 1.2 trillion yuan ($ 173 b) into the economy to fight against Corona virus

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China’s central bank said Sunday it would pump 1.2 trillion yuan ($ 173 b) 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 PBOC also announced measures Saturday to step up monetary and credit support for enterprises which are helping in its fight against the virus, such as medical companies.

China’s central bank urged financial institutions to provide “sufficient credit resources” to hospitals and medical research units, among other measures.

Authorities also relaxed tariffs on goods imported for use in the virus fight – including those from the United States, with which it has been engaged in a bruising trade war for around two years.

The move to inject liquidity into its financial system comes as authorities work to shore up confidence in an already slowing economy.

BEIJING (AFP)