PBC injects liquidity via reverse repo
The People’s Bank of China (PBC) has carried out on Thursday a seven-day reverse repo operation, injecting 2 billion yuan (approximately $281.3 million) into the financial system, Xinhua reported.
The PBC stated that the action, conducted at an interest rate of 1.8 per cent, is aimed at maintaining reasonable and ample liquidity in the banking system.
A reverse repo involves the central bank purchasing securities from commercial banks through a bidding process, with an agreement to sell them back in the future.
