China's money markets have started to come unglued, with serious illiquidity driving up money rates. Despite provoking one of the largest liquidity operations in twenty years from the PBOC yesterday, the disorder came back even worse today. All of this against the backdrop of a currency fight and the prospect China's bank credit problem becomes a full-blown liquidity crisis.
Eurodollar University's Money & Macro Analysis
Bloomberg China's Central Bank Pumps Near-Historic Level of Cash Into Financial System
https://www.bloomberg.com/news/articles/2025-01-15/pboc-dials-up-short-term-liquidity-injections-amid-cash-squeeze
Bloomberg China Cash Squeeze Rolls on Even After Central Bank’s Infusions
https://www.bloomberg.com/news/articles/2025-01-16/china-cash-squeeze-rolls-on-even-after-pboc-liquidity-boosts
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Twitter: https://twitter.com/JeffSnider_EDU
What is Eurodollar University?
Jeff Snider will guide you through the realm of monetary science. Multiple episodes uploaded each week, discussing big news and key current events, the state of markets and what they are telling you, as well as historical summaries and deep background material so that you can understand what’s really going on in this eurodollar’s world.