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China's central bank injects liquidity into market

Xinhua News,BEIJING
2020-09-18 11:00

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BEIJING, Sept. 18 (Xinhua) -- China's central bank on Friday continued to pump cash into the banking system via reverse repos to maintain liquidity.

The People's Bank of China injected a total of 170 billion yuan (about 25.15 billion U.S. dollars) into the market, including 110 billion yuan through seven-day reverse repos at an interest rate of 2.2 percent and 60 billion yuan of 14-day contract at an interest rate of 2.35 percent, according to a statement on the website of the central bank.

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

With 90 billion yuan of reverse repos maturing Friday, the operation led to a net injection of 80 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.
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