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China injects 50b yuan into market

Updated: Sep 22,2015 5:23 PM     Xinhua

BEIJING — China’s central bank pumped 50 billion yuan ($7.85 billion) into the money market via reverse repurchase agreement (repo) on Sept 22, the first cash injection this week.

The yield for the seven-day reverse repo stood at 2.35 percent, according to a statement of the People’s Bank of China (PBOC).

Under a reverse repo, the central bank purchases securities from large banks and brokerages with the agreement to sell them in the future as an effective means to tackle short-term money shortages in the market.

The cash injection will offset the effects from earlier reverse repo due on Sept 22.

Given a stable renminbi (RMB), the money shortage was greatly eased in September and the PBOC’s operations were smaller than those in August.