BUSINESS China's central bank injects liquidity into market

BUSINESS

China's central bank injects liquidity into market

Xinhua

10:57, October 18, 2019

BEIJING, Oct. 18 (Xinhua) -- China's central bank pumped 30 billion yuan (about 4.24 billion U.S. dollars) into the financial system Friday.

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File photo: CGTN

The People's Bank of China (PBOC) injected 30 billion yuan into the market through seven-day reverse repos at an interest rate of 2.55 percent.

With no reverse repos maturing Friday, this led to a net injection of 30 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.

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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