USEUROPEAFRICAASIA 中文双语Français
Business
Home / Business / Finance

Central bank renews cash injection into market

Xinhua | Updated: 2017-03-20 13:32

BEIJING - China's central bank renewed its net cash injections via open market operations Monday after suspending the move for 17 trading days.

The People's Bank of China (PBOC) conducted 100 billion yuan ($14.5 billion) of reverse repos, a process by which the central bank purchases securities from banks through bidding, with an agreement to sell them back in the future.

The injection saw a net 40 billion yuan pumped into the market Monday, offset by 60 billion yuan in maturing reverse repos.

The operations included seven-day reverse repos priced to yield 2.45 percent, 14-day contracts with a yield of 2.6 percent, and 28-day agreements with a yield of 2.75 percent, according to a central bank statement.

As the end of the first quarter approaches, the central bank intends to keep liquidity stable. The US Federal Reserve's latest decision to raise interest rates has helped ease exchange rate uncertainty, said analysts.

Hours after the US interest rate hike, China's interest rates for medium-term lending facility (MLF) loans and reverse repos, both open market operation tools of the central bank, went up by 10 basis points.

The higher rates are the result of changes in market supply and demand and do not indicate a shift in China's monetary policy stance, the central bank has said.

China has vowed to pursue a prudent and neutral monetary policy in 2017.

Most Viewed in 24 Hours
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
FOLLOW US