xi's moments
Home | Finance

China's central bank injects liquidity into market

Xinhua | Updated: 2020-09-28 13:13

A cashier at a bank in Taiyuan, Shanxi province counts renminbi notes. [Photo/China News Service]

BEIJING -- China's central bank on Monday continued to pump cash into the banking system via reverse repos to maintain liquidity.

The People's Bank of China injected 40 billion yuan (about $5.86 billion) into the market through 14-day reverse repos at an interest rate of 2.35 percent, according to a statement on its website.

The move was intended to maintain stable liquidity in the banking system at the end of the third quarter, 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.

Global Edition
BACK TO THE TOP
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349