PBOC tries to calm money markets ahead of CNY

Beijing

THE People's Bank of China (PBOC) is adding administrative orders to its toolbox to calm money markets amid record capital outflows and a surge in cash demand before Year of the Monkey celebrations.

The monetary authority told some banks to cancel repurchase agreements at interest rates it deemed excessive, people familiar with the matter said on Friday. It also advised some institutions to keep rates on the short-term loans below certain levels, they added.