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.
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.
