China's central bank pumped 200 billion yuan (about 28.57 billion US dollars) into the financial system Wednesday, after a suspension of reverse repos that lasted for 20 straight trading days.
The People's Bank of China (PBOC) injected 50 billion yuan into the market through seven-day reverse repos at an interest rate of 2.5 per cent, and conducted 150 billion yuan of 14-day reverse repos at an interest rate of 2.65 per cent.
With no reverse repos maturing Wednesday, this led to a net injection of 200 billion yuan, reports Xinhua.
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 keeps its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.
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