China’s c. bank adds $2.8b liquidity via reverse repos

China’s central bank, the People’s Bank of China (PBC) injected two billion yuan ($281.42 million) into the banking system on Tuesday through seven-day reverse repos, Xinhua reported.

The PBC announced the move to ensure sufficient liquidity in the financial system by conducting reverse repos. This involves the PBC buying securities from commercial banks with an agreement to sell them back later.