China’s central bank injects $29b into market

20 January, 2020 12:00 AM printer

BEIJING: China’s central bank pumped 200 billion yuan (about 29.03 billion U.S. dollars) into the financial system via reverse repos on Sunday.

The People’s Bank of China (PBOC) injected 200 billion yuan into the market through 14-day reverse repos at an interest rate of 2.65 percent, reports Xinhua.

The move aimed at maintaining liquidity in the banking system at a reasonably sufficient level before the Spring Festival, according to a statement on the website of the PBOC.

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.