WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

CHINA Money Market Rates fell Friday

Posted by Chris Advincula on Jun 21, 2013 6:52:00 AM
June 21 Friday 11:10 GMT
LONDON - Chinese Interbank rates fell on Friday morning with widespread talks that the People's Bank of China had instructed large banks and lenders to make lending liquidity available. However, the overnight repo rate has been quoted as high as 25 percent in the morning session, suggesting that the liquidity conditions have not eased enough to give the assurance to the interbank lenders.
The seven-day repo rate stood at 8.2%, below the 12% level yesterday but it was above the 4% rate during normal liquidity conditions. 
The PBOC however, said that the central bank did not inject funds into the market via reverse repos and the reports of an intervention are "inaccurate".
The implications of a prolonged liquidity constriction could risk trigerring further even a broader credit crunch situation that can add to the Chinese economy already slowing down.
Chris Advincula
WorldWideMarkets
 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!