China injects ¥91.5b into banking system

China’s central bank injected 91.5 billion yuan ($12.89 billion) into the banking system on Monday through seven-day reverse repos at an interest rate of 1.7 per cent. The People’s Bank of China (PBC) stated that the move aimed to ensure reasonable and ample liquidity in the financial system.

A reverse repo occurs when the central bank purchases securities from commercial banks with an agreement to sell them back later. The statement came during the central bank’s liquidity management operations on Monday.

Attribution: Xinhua

Subediting: M. S. Salama