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China’s central bank continues to inject liquidity

Updated: Apr 19,2018 2:48 PM     Xinhua

BEIJING — China’s central bank on April 19 continued to inject funds into the banking system via open market operations to maintain liquidity.

The People’s Bank of China (PBOC) conducted 190 billion yuan (about $30.3 billion) of seven-day reverse repos, according to a PBOC statement.

The move followed an injection of 150 billion yuan through seven-day reverse repos on April 18.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The operation on April 19 aims to offset impacts from payments for taxes and government bonds, and keep liquidity in the banking system at a reasonable and stable level, the PBOC said.

The interest rate for the reverse repos remained unchanged at 2.55 percent.

In the interbank market of April 18, the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, rose 1.4 basis points to 2.679 percent.

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