China’s central bank injects $2.94bn into system

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Beijing, Sept. 27, 2020 (Xinhua/Naija247news) China’s central bank on Sunday continued to pump cash into the banking system via reverse repos to maintain liquidity.

The People’s Bank of China injected 20 billion yuan (about 2.94 billion U.S. dollars) into the market through 14-day reverse repos at an interest rate of 2.35 per cent, according to a statement on its website.

The move was intended to maintain stable liquidity in the banking system at the end of the third quarter, 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 pursues a prudent monetary policy in a more flexible and appropriate way, according to this year’s government work report.

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