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China's central bank injects liquidity into market

Xinhua News,BEIJING
2020-09-29 10:45

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BEIJING, Sept. 29 (Xinhua) -- China's central bank on Tuesday continued to pump cash into the banking system via reverse repos to maintain liquidity.

The People's Bank of China injected 100 billion yuan (about 14.67 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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