BUSINESS China's central bank injects liquidity into market

BUSINESS

China's central bank injects liquidity into market

Xinhua

15:22, May 30, 2019

BEIJING, May 30 (Xinhua) -- The People's Bank of China (PBOC), China's central bank, on Thursday injected 30 billion yuan (about $4.35 billion) into the financial system through open market operations.

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(Photo: VCG)

To maintain sufficient liquidity, the central bank conducted the operations with seven-day reverse repos at an interest rate of 2.55 percent.

No reverse repos matured Thursday.

The move came after the central bank deposited 80 billion yuan as time deposits with commercial banks under the central treasury cash management.

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 will keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.

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