BEIJING, April 17 (Xinhua) -- China's central bank injected funds into the monetary market on Wednesday to maintain ample liquidity in the banking system.
The People's Bank of China conducted 160 billion yuan (about 23.84 billion U.S. dollars) of 7-day reverse repos at an interest rate of 2.55 percent and 200 billion yuan at a 1-year medium-term lending facility (MLF) at an interest rate of 3.3 percent on Wednesday.
Meanwhile, 366.5 billion yuan of MLF matured on the same day.
A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.
The People's Bank of China conducted 160 billion yuan (about 23.84 billion U.S. dollars) of 7-day reverse repos at an interest rate of 2.55 percent and 200 billion yuan at a 1-year medium-term lending facility (MLF) at an interest rate of 3.3 percent on Wednesday.
Meanwhile, 366.5 billion yuan of MLF matured on the same day.
A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.
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