BUSINESS China's central bank injects liquidity into market


China's central bank injects liquidity into market


13:58, October 20, 2020

PBOC file photo.jpg

This file photo shows the headquarters of the People's Bank of China, the central bank in Beijing. (File photo: VCG)

BEIJING, Oct. 20 (Xinhua) -- China's central bank pumped cash into the banking system through open market operations to maintain liquidity Tuesday.

The People's Bank of China injected 70 billion yuan (about 10.46 billion U.S. dollars) into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on its website.

The move was intended to maintain reasonably ample liquidity in the banking system, the central bank said.

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.

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