ZCZC
BCN-11
CHINA-CENTRAL-BANK-INJECTS
China’s central bank injects liquidity into market
BEIJING, July 23 (BSS/Xinhua) – China’s central bank pumped cash into the banking system via reverse repos Thursday.
The People’s Bank of China injected a total of 50 billion yuan (about 7.15 billion U.S. dollars) into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on the website of the central bank.
As 50 billion yuan of reverse repos matured Thursday, the operation led to no net injection.
A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
China will pursue a prudent monetary policy in a more flexible and appropriate way, according to this year’s government work report.
The country will use a variety of tools including required reserve ratio reductions, interest rate cuts, and re-lending to enable M2 money supply and aggregate financing to grow at notably higher rates than last year, said the report.
BSS/Xinhua/MSY/1136 hrs