BEIJING, Nov. 15 (Xinhua) -- China's central bank on Tuesday added liquidity to the banking system via operations of medium-term lending facility (MLF) and reverse repos.
The moves aim to offset impacts of factors such as taxation peaks and to keep liquidity in the banking system reasonable and ample, the People's Bank of China (PBOC) said in a statement.
The central bank injected 850 billion yuan (about 120.7 billion U.S. dollars) into the market through one-year MLF with an interest rate of 2.75 percent.
The central bank also conducted seven-day reverse repos worth 172 billion yuan at an interest rate of 2 percent.
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.
A total of 1 trillion yuan of MLF are due in November.
Aside from the MLF and reverse repos, PBOC has pumped 320 billion yuan in November through tools including the pledged supplementary lending and relending facility, according to the statement.
A single purchase
