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China’s central bank injects liquidity into market

Abstract : China's central bank pumped cash into the banking system through open market operations to maintain liquidity Thursday.

BEIJING, Oct. 29 (Xinhua) — China’s central
bank pumped cash into the banking system through open market operations
to maintain liquidity Thursday.

The People’s Bank of China injected 140 billion yuan (about 20.8
billion U.S. dollars) into the market through seven-day reverse repos at
an interest rate of 2.2 percent, according to a statement on its
website.

The move was intended to maintain reasonably ample liquidity in the banking system, the central bank said.

With 50 billion yuan of reverse repos maturing on the same day, the
move led to a net liquidity injection of 90 billion yuan into the
market.

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.
Enditem

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Source: China’s central bank injects liquidity into market

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