BUSINESS China's central bank injects 20b yuan into market

BUSINESS

China's central bank injects 20b yuan into market

Xinhua

16:25, July 31, 2020

Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing. (Photo: Sipa)

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

The People's Bank of China injected 20 billion yuan (about $2.9 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.

No reverse repos matured Friday.

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.

The country used a variety of tools including required reserve ratio reductions, interest rate cuts, and re-lending to enable M2 money supply and aggregate financing to grow at notably higher rates than last year.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue