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China's central bank injects liquidity into market via reverse repos

Xinhua News,BEIJING
2020-11-13 10:36

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BEIJING, Nov. 13 (Xinhua) -- China's central bank pumped cash into the banking system through open market operations to maintain liquidity Friday.

The People's Bank of China injected 160 billion yuan (about 24.14 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 its website.

The move was intended to maintain reasonably 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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