China’s PBC injects $281.3m liquidity via reverse repos

The People’s Bank of China (PBC) has injected two billion yuan ($281.38 million) into the banking system through seven-day reverse repos at an interest rate of 1.8 per cent, Xinhua reported on Wednesday, citing a PBC statement.

This move aims to maintain reasonable and ample liquidity within the Chinese financial system, according to a statement from the PBC.

The central bank purchases securities from commercial banks through bidding. These securities are then returned to the banks after a predetermined period, usually seven days in this case.