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China's central bank injects liquidity into market

BEIJING
2020-12-31 11:18

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BEIJING, Dec. 31 (Xinhua) -- China's central bank on Thursday conducted 90 billion yuan (about 13.8 billion U.S. dollars) of reverse repos to maintain stable liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.2 percent, according to a statement on the website of the People's Bank of China.

Meanwhile, 10 billion yuan of reverse repos matured on the same day, resulting in a net liquidity injection of 80 billion yuan.

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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