China’s c. bank injects 324b yuan to boost banking system

The People’s Bank of China (PBOC) issued 324 billion yuan ($44.87 billion) through 7-day repo, reverse repurchase operations, at an interest rate of 1.8 per cent in order to maintain liquidity in the banking system, Xinhua reported on Wednesday.

Repo refers to a transaction in which a dealer acts as a seller—borrowing money and providing securities as collateral. In reverse repo, a dealer acts as a buyer—borrowing securities and lending money.