Chinese Central Bank Injects $173 Billion Into Economy Amidst Coronavirus Outbreak

International Business

China's central bank has said on February 2 that it would pump $173 billion to stabilise the economy as it fights a nationwide outbreak of coronavirus.

Written By Aanchal Nigam | Mumbai | Updated On:
Chinese

China's central bank has said on February 2 that it will pump $173 billion into the economy to help fight the nationwide outbreak of the Coronavirus. As the deadly virus claims more than 300 lives with nearly 14,000 confirmed cases in China, the People's Bank of China released a statement which said that it would launch 1.2 trillion yuan reverse purchase operation to maintain 'reasonable abundant liquidity' in the banking system. 

In order to further stabilise the currency market as the nation deals with the epidemic, the banking system would be 900 billion yuan more than it was in the same period last year. The announced move will kick in the day China's financial markets reopen after an extended Chinese Lunar Year holidays. 

A day before, China's Central bank also announced another range of measures to ramp-up the monetary as well as the credit support to enterprises which are currently contributing to the battle against the 2019-nCoV including medical companies. 

Read - How To Survive Coronavirus Quarantine, French Style

Furthermore, the PBOC also urged the financial institutions to provide 'sufficient credit resources' to hospitals along with other medical facilities. The latest development of injecting liquidity into the financial system came after the Coronavirus outbreak took a toll on an already slowing economy. 

According to international reports, China's economic growth last year was the slowest in the last three decades with only 6.1 per cent. Moreover, the virus outbreak could further slow down the economy if it goes on for an extended period of time. 

Read - Only One Swab Sample Enough For Coronavirus Testing, Says WHO

US ready to house 1000 quarantines

As WHO has already denoted the Coronavirus outbreak a 'global health emergency', countries around the globe are stepping up their health security. The United States not only declared an 'emergency' and imposed a travel ban to China in order to contain the spread but recently, the country's defence department also announced that it would provide accommodation to 1,000 people if they need to be quarantined because of the deadly coronavirus outbreak. Several facilities capable of housing at least 250 people in individual rooms will be made available for suspects or patients until February 29.  

The US was also one of the countries which have been isolating citizens who travelled to the Chinese city of Wuhan which has also been identified as the epicentre of the outbreak. According to reports, two US Air Force bases in California and Texas along with Marine Corps air station in California and a training institute in Colorado will be offered by the department in case of need.  

Read - No Coronavirus Case Reported In Kashmir So Far: Officials

Read - US Military Ready To Provide Quarantine Housing To 1,000 Amid Coronavirus Outbreak

(With Agency Inputs)

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