China’s central bank continues to add liquidity via reverse repos

BEIJING, 7th March, 2023 (WAM) — China’s central bank continued to inject funds into the financial system through open market operations on Tuesday, state news agency Xinhua reported.

The People’s Bank of China said on its website that it had conducted 3 billion yuan (about US$433.8 million) of seven-day reverse repos at an interest rate of 2 percent.

The move aims to keep stable liquidity in the banking system, the central bank said.

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.

Rola AlGhoul/ Esraa Esmail

Source:Emirates news Agency