China's central bank injects 150b yuan into market

BEIJING -- China's central bank Friday pumped cash into the banking system via reverse repos to maintain proper liquidity.

The People's Bank of China injected 150 billion yuan (about $21.6 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 offset the impact of factors such as the issuance of government bonds, the central bank said.

As a total of 10 billion yuan of reverse repos matured on Friday, the central bank injected a net 140 billion yuan into the banking system.

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.