Markets > Bonds

China's central bank injects liquidity into market

Xinhua News,BEIJING
2020-08-31 11:14

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BEIJING, Aug. 31 (Xinhua) -- China's central bank Monday continued to pump cash into the banking system via reverse repos to maintain liquidity.

The People's Bank of China injected 20 billion yuan (about 2.9 billion U.S. dollars) into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to the central bank.

The move was intended to maintain reasonable and ample liquidity in the banking system, 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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