China’s c. bank injects $281.4m into banking system

China’s central bank, the People’s Bank of China (PBC) injected 2 billion yuan ($281.48 million) into the banking system through seven-day reverse repurchase agreements on Tuesday, Xinhua reported.

The interest rate for this liquidity injection was set at 1.8 per cent.

This move aims to maintain reasonable and ample liquidity within the Chinese banking system, according to a statement released by the PBOC.

A reverse repo is a financial tool used by central banks to manage short-term liquidity.