BEIJING: China’s central bank continued to pump money into the market to ease a liquidity strain this week.
The People’s Bank of China (PBOC) conducted 395 billion yuan (US$61.16 billion) of seven-day reverse repurchase agreements (repo) from Monday to Friday, a process in which central banks purchase securities from banks with an agreement to resell them in the future.
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The reverse repos were all priced to yield 2.25 percent.
This week’s injections have resulted in a net 15 billion yuan pumped into the market, offset by 380 billion yuan in maturing reverse repos.
This follows a net injection of 180 billion yuan into the financial system last week.
The continuous injections showed that the country’s money supply was a bit tight, analysts said.
