The People’s Bank of China conducted short-term liquidity operations (SLOs) for three consecutive days last week, injecting a combined 300 billion yuan (US$49.5 billion) into selected banks, China Business News reported Monday, citing a central bank statement on its official microblog. Interbank rates have soared in recent weeks as bank capital tightened after October. On Dec. 19, the two-week Shanghai Interbank Offered Rate rose by 113.9 basis points to 6.218 percent, while the one-week SHIBOR went up by 57 basis points to 6.472 percent, the report said. But according to the PBoC, interbank excess reserves have exceeded 1.5 trillion yuan, which is at a high level historically speaking.
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