BEIJING, Oct. 26 (Xinhua) -- China's central bank on Monday pumped 100 billion yuan (about 14.99 billion U.S. dollars) into the interbank system, via two liquidity tools of reverse repos and fixed-term treasury cash deposits.
The People's Bank of China injected 50 billion yuan into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on its website.
The move was intended to maintain reasonably ample liquidity in the banking system, the central bank said.
A total of 50 billion yuan of reverse repos matured on Monday.
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.
In addition, the PBOC, together with the Ministry of Finance, channeled 50 billion yuan of funds into commercial banks via fixed-term deposits of commercial banks for central treasury cash management.
China's treasury cash is held at the PBOC, or the central bank, but commercial banks also look after a part of it in the form of short-term deposits. Eligible commercial banks compete through a tender process for the right to take on the deposits.
China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report. Enditem
A single purchase
