BUSINESS China central bank injects 150 bln yuan into market

BUSINESS

China central bank injects 150 bln yuan into market

Xinhua

11:02, December 20, 2019

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File photo: CGTN

BEIJING, Dec. 20 (Xinhua) -- China's central bank pumped 150 billion yuan (about 21 billion U.S. dollars) into the financial system Friday.

The People's Bank of China injected 150 billion yuan into the market through 14-day reverse repos at an interest rate of 2.65 percent.

With no reverse repos maturing Friday, this led to a net injection of 150 billion yuan.

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.

The country will continue to implement a proactive fiscal policy and prudent monetary policy, according to the annual Central Economic Work Conference held last week.

The quality and effect of the fiscal policy must be enhanced with more efforts on structural adjustment, while the monetary policy should be pursued with moderate flexibility to maintain market liquidity at a reasonably ample level, said the statement released after the conference.

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