BEIJING, May 29 (Xinhua) -- China's central bank on Tuesday injected cash into the interbank monetary market to maintain liquidity.
The People's Bank of China (PBOC) conducted 100 billion yuan (about 15.62 billion U.S. dollars) of seven-day reverse repos and 80 billion yuan of 28-day reverse repos, according to a PBOC statement. Taking into account the 13 billion yuan of reverse repos that matured Tuesday, the net injection stood at 50 billion yuan.
A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
The interest rate for the seven-day reverse repos stood at 2.55 percent, while the rate for 28-day contracts was 2.85 percent.
The PBOC has managed market liquidity through targeted moves rather than across-the-board adjustments of interest rates.
The central bank plans to keep monetary policy prudent and neutral, maintain a stable, reasonable level of liquidity this year, and oversee moderate growth of financial credit and social financing. Enditem
A single purchase
