China’s central bank continued to pump money into the financial system on Feb 25 through open market operations.
The People’s Bank of China (PBOC) conducted 340 billion yuan ($52.31 billion) of reverse repurchase agreements (repo), in which central banks purchase securities from banks with agreements to resell them in the future.
The seven-day reverse repo was priced to yield 2.25 percent.
The move followed a seven-day reverse repo of 40 billion yuan on Feb 24, 130 billion yuan on Feb 23 and 70 billion yuan on Feb 22.
Despite Thursday’s operations, the overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, climbed 4.8 basis points to 2.004 percent.