Chinese Central Bank pours about $60 billion liquidity into the ‎banking system

Today, the People’s Bank of China (the central bank) conducted 7-day reverse repo operations, worth 43 billion yuan ($59.99 billion), at an interest rate of 1.8%.

The Central Bank stated, according to the Chinese News Agency (Xinhua), that this step aims to maintain reasonable and ample liquidity in the banking system.

In reverse repo operations, the central bank buys securities from commercial banks through bidding, with an agreement to resell them to them again in the future.