The People's Bank of China injected 100 billion yuan (about 14.1 billion U.S. dollars) into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on the website of the central bank.
The move is intended to keep liquidity in the banking system at a reasonably sufficient level, the central bank said.
As 150 billion yuan of reverse repos matured Friday, the operation led to a net withdrawal of 50 billion yuan from 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 will pursue a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.
The country will use a variety of tools including required reserve ratio reductions, interest rate cuts, and re-lending to enable M2 money supply and aggregate financing to grow at notably higher rates than last year, said the report.
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