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E-mail Xinhua, June 17, 2024
File photo shows an exterior view of the People's Bank of China in Beijing, capital of China. [Photo/Xinhua]
China's central bank injected liquidity into the banking system through reverse repos and medium-term lending facility (MLF) on Monday.
The People's Bank of China conducted 4 billion yuan (about 562.2 million U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent.
A total of 182 billion yuan was also injected into the market via the MLF, which will mature in one year at an interest rate of 2.5 percent.
The move is aimed at keeping liquidity reasonable and ample in the banking system to fully satisfy the needs of financial institutions, the central bank said in a statement.
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.
The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.
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