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Central bank pumps more money into market

Updated: May 11,2016 3:33 PM     Xinhua

BEIJING — China’s central bank on May 11 pumped more money into the market to ease a liquidity strain.

The People’s Bank of China (PBOC) conducted 80 billion yuan ($12.3 billion) in seven-day reverse repurchase agreements (repo), a process in which central banks purchase securities from banks with an agreement to resell them in the future.

The reverse repo was priced to yield 2.25 percent, unchanged from the injection of 70 billion yuan on May 10, according to a PBOC statement.

The move followed a net injection of 20 billion yuan into the financial system on May 9.

In the interbank market on May 11, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, stayed flat at 1.999 percent.