China’s central bank continues cash injection

23 May, 2019 12:00 AM printer

BEIJING: China's central bank Wednesday continued to inject liquidity into the money market through open market operations.

The People's Bank of China (PBOC) conducted 20 billion yuan (about 2.9 billion U.S. dollars) of seven-day reverse repos at an interest rate of 2.55 percent, reports Xinhua.

No reverse repo is due on Wednesday.

The PBOC said in a statement that Wednesday's operation is aimed at offsetting the impact of factors such as tax payment season.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.