China’s Central Bank Injects over ฿15Bn of Liquidity into the Market in a Reverse Repos

China’s central bank on Thursday conducted 100 billion yuan (about 15.48 billion U.S. dollars) of reverse repos to keep liquidity stable in the banking system.

 

The interest rate for the 14-day reverse repos was set at 2.35 percent, according to a statement on the website of the People’s Bank of China.

 

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’s central bank has pledged to make its prudent monetary policy more targeted and flexible to adapt better to the needs of high-quality development and put more focus on the efficiency of financial services to support the real economy.

 

Source: Xinhua