Money rates surge as banks move to meet cash de­mand

China Daily (Hong Kong) - - BUSINESS / DIGEST -

The bench­mark money-mar­ket rate for the coun­try climbed a sev­enth day, and in­ter­e­strate swaps rose as banks hoarded cash to meet year-end reg­u­la­tory re­quire­ments. The seven-day re­pur­chase rate, a gauge of fund­ing avail­abil­ity in the bank­ing sys­tem, jumped 124 ba­sis points on Mon­day to 8.84 per­cent, the high­est level since June 20, ac­cord­ing to a daily fix­ing from the Na­tional In­ter­bank Fund­ing Cen­ter. The rate, which has more than dou­bled from 4.37 per­cent in the past week, touched a record 10.77 per­cent in June. “Banks’ cash de­mand to meet reg­u­la­tory re­quire­ments by year-end will mean rates may stay el­e­vated for another week or so,” said Yang Kun, a Shang­hai-based an­a­lyst at Guo­tai Ju­nan Se­cu­ri­ties Co.

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