China’s long new year holiday is coming up, PBOC beginning to inject funds

China’s Lunar New Year, marking the start of the Year of the Snake, falls on Wednesday, January 29.

The official public holiday spans 8 days, from January 28 (New Year’s Eve) to February 4.

During this period, many businesses and government offices close, allowing people to travel home for family reunions. Celebrations traditionally continue for 16 days, culminating with the Lantern Festival on February 12.

With this long holiday comes a large demand for cash.

The People’s Bank of China is in preparation mode, injecting funds today for 14 days rather than the usual 7 days:

• The People’s Bank of China injects 1157bn yuan via 14-day reverse repos in open market operations
• 959bn yuan mature today

This article was written by Eamonn Sheridan at www.forexlive.com.