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People's Bank of China to inject 75b yuan to boost liquidity

China's central bank will allow funds in non-resident accounts (NRA) to be converted into fixed deposits, sources told Reuters, which could encourage foreigners' to keep trade-related earnings in the country and help authorities temper capital outflows.

[SHANGHAI] China's central bank will inject 75 billion yuan (S$16.41 billion) into the money markets through 28-day reverse bond repurchase agreements, and will inject 80 billion yuan via seven-day reverse repos on Tuesday, traders said.

This is the first issue of 28-day tenor since February 2015.

Maturing reverse repos will drain a net 240 billion yuan from the banking system this week.

The People's Bank of China (PBOC) conducted a net injection of 40 billion yuan into the banking system last week.