China's central bank injects liquidity into market
Source: Xinhua | 2020-08-22
China's central bank Friday pumped cash into the banking system via reverse repos to maintain liquidity.
The People's Bank of China injected 150 billion yuan (about 21.7 billion U.S. dollars) into the market through seven-day reverse repos at an interest rate of 2.2 percent, and 50 billion yuan through 14-day reverse repos at an interest rate of 2.35 percent, according to a statement on the website of the central bank.
A total of 150 billion yuan of reverse repos matured Friday.
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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