BEIJING — China’s central bank injected liquidity into the money market through reverse repos to maintain liquidity on Dec 29.
The People’s Bank of China (PBOC) conducted 150 billion yuan ($21.86 billion) of seven-day reverse repos at an interest rate of 2.55 percent and 80 billion yuan of 14-day reverse repos at 2.7 percent.
With no reverse repos due Dec 29, the net market injection came in at 230 billion yuan.
The PBOC said in a statement that operation on Dec 29 is aimed at maintaining reasonable and sufficient liquidity in the banking system.
Through reverse repos, the central bank purchases securities from commercial banks through bidding with an agreement to sell them back in the future.