China's central bank pumps 2 billion yuan into the banking system
The People's Bank of China (the central bank) announced today that it has injected two billion yuan (about $291.82) into the banking system through reverse repo operations to maintain liquidity.
And the Chinese news agency "Xinhua" reported that the interest rate on the reverse repo agreements for seven days was set at 2%, according to the bank, which stated that this step aims to maintain liquidity stability in the banking system.
Reverse repurchases or what is known as “reverse repo” are financial operations in which the central bank purchases securities from commercial banks through specific offers, with an agreement to sell them back to them again in the future.
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