Abstract : China's central bank on Sunday continued to pump cash into the banking system via reverse repos to maintain liquidity.
BEIJING, Sept. 27 (Xinhua) — China’s central
bank on Sunday continued to pump cash into the banking system via
reverse repos to maintain liquidity.
The People’s Bank of China injected 20 billion yuan (about 2.94
billion U.S. dollars) into the market through 14-day reverse repos at an
interest rate of 2.35 percent, according to a statement on its website.
The move was intended to maintain stable liquidity in the banking system at the end of the third quarter, the central bank said.
A reverse repo is a process in which the central bank purchases
securities from commercial banks through bidding, with an agreement to
sell them back in the future.
China pursues a prudent monetary policy in a more flexible and
appropriate way, according to this year’s government work report.
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Source: China’s central bank injects liquidity into market