China's central bank on Tuesday continued to pump money into the inter-bank market to provide more liquidity. The People's Bank of China (PBOC) put 180 billion yuan (around 28 billion U.S. dollars) into seven-day reverse repos, a process by which central banks purchase securities from banks with an agreement to sell them back in the future.
The reverse repo was priced to yield 2.25 percent, according to a PBOC statement.
Reverse repos worth 110 billion yuan will mature on Tuesday, so the PBOC has effectively injected 700 billion yuan into the market.
The central bank has adopted repos and other liquidity operations to ease money shortages in the market more frequently this year, rather than cuts in interest rates or the reserve requirement ratio.
On Tuesday's interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor) was up 0.2 basis point to 2.04 percent.
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