China's central bank injects liquidity into market
Xinhua | Updated: 2020-09-17 16:46
BEIJING -- China's central bank on Thursday continued to pump cash into the banking system via reverse repos to maintain liquidity.
The People's Bank of China injected 110 billion yuan ($16.25 billion) 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 was intended to maintain reasonable and ample liquidity in the banking system, the central bank said.
As 140 billion yuan of reverse repos and 200 billion yuan of medium-term lending facility (MLF) matured Thursday, the operation led to a net withdrawal of 230 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 pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.
- China's central bank injects liquidity into market
- China pumps net $34 billion into markets
- China's financial institutions see rising assets
- New rules will further reduce China's financial risk
- More steps to boost financial sector opening-up
- Credit system to include online lending
- Financial holding firms face increasing scrutiny