The Chinese central bank injects more liquidity into the financial system through reverse repo operations

2023-07-19 05:36:16

BEIJING, July 19 (Xinhua) — The People’s Bank of China (the central bank) on Wednesday continued to inject money into the financial system through open market operations.

The bank said it has entered into reverse repo agreements (reverse repo) worth 25 billion yuan (about 3.5 billion US dollars) for seven days at an interest rate of 1.9 percent.

The bank added that this step aims to maintain reasonable and ample liquidity in the banking system.

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

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