China’s c. bank injects $281.5m liquidity via reverse repo

China’s central bank injected two-billion-yuan ($281.5 million) liquidity into the banking system on Wednesday, through a seven-day reverse repo operation, Xinhua reported.

The central bank stated that this operation aims to maintain reasonable and ample liquidity within the Chinese banking system. Reverse repos are a tool used by central banks to manage short-term liquidity.

In this operation, the PBC purchases securities from commercial banks with an agreement to resell them back in seven days. This injects cash into the system, promoting lending activity.