China's central bank releases nearly 2 trillion yuan in temporary liquidity

People's Bank of China building.
VCG | Getty Images
People's Bank of China building.

China's central bank said on Friday that it has released temporary liquidity worth almost 2 trillion yuan ($316.28 billion) to satisfy cash demand before the long Lunar New Year holidays.

The People's Bank of China had announced in December that it would allow some commercial banks to temporarily keep less required reserves to help them cope with the heavy demand for cash ahead of the festivities, which begin later next week.

Interbank liquidity levels will remain reasonably stable, the PBOC said on its official microblog.