China’s central bank injects 180 bln yuan into market

Beijing: China’s central bank pumped cash into the banking system via reverse repos to maintain liquidity.

With no reverse repos maturing, the People’s Bank of China injected a total of 180 billion yuan (FJ$55 billion) into the market through seven-day reverse repos at an interest rate of 2.2 per cent, according to a statement on the website of the central bank.

The move is intended to maintain stable 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 will pursue a prudent monetary policy in a more flexible and appropriate way, according to this year’s government work report.