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) 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.
