Global liquidity has really increased in late 2025 and is near an all-time high according to some indices.
👉China : ¥1 trillion per week?
The People's Bank of China (PBOC) has recently injected a large amount of money. In December 2025, they announced an "Outright Reverse Repo" operation worth about 1 trillion yuan. However, this is not being done every week; rather, it is a large injection of a fixed term (such as 3 months) that is done to keep the supply of cash in the market stable.
👉US Fed : $30 billion injection?
The $30 billion figure was originally related to deposits of large banks during the 2023 banking crisis. However, in the current context, the US Federal Reserve is planning to stop reducing its Quantitative Tightening (QT) and reinvest money in the bond market. It is reported that since the beginning of December, they have started buying about $40 billion worth of Treasury bills per month, which is increasing market liquidity.
👉Japan & India : Japan has approved a stimulus package worth about $114 billion, which is true. This major step has been taken to keep the country's economy afloat and combat the effects of inflation. In India, incentives worth about $32 billion or so have been announced for various infrastructure or agricultural sectors.
According to various financial analysts (such as CrossBorder Capital) and research data, global liquidity will exceed about $175 trillion by October-December 2025, which is a record. The tendency of central banks to reduce interest rates and the re-flow of money into the bond market is the main reason for this.
The bottom line : The market is now awash with a lot of cash. As a result, the prices of the stock market, gold and cryptocurrencies are seen rising, but this could increase inflation again in the long run.
