Global EditionASIA 中文双语Français
Home / Business / Finance

Central bank injects liquidity via reverse repos

Xinhua | Updated: 2018-04-18 14:25
Share - WeChat

BEIJING - China's central bank on Wednesday injected funds into the banking system via open market operations to maintain liquidity.

The People's Bank of China (PBOC) conducted 150 billion yuan (about $23.9 billion) of seven-day reverse repos, according to a PBOC statement.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The operation aims to offset factors such as tax payments, and maintain liquidity in the banking system at a reasonable and stable level, the statement said.

The interest rate for the reverse repos was unchanged at 2.55 percent.

In Tuesday's interbank market, the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, rose 8.3 basis points to 2.665 percent.

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