Saturday, 2 March 2024

Chinese central bank pumps $66.61 billion into banking system

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Today, the People’s Bank of China (the central bank) pumped 438 billion yuan ($66.61 billion) into the banking system through 7-day reverse repurchase operations at an interest rate of 1.8%, after pumping 415 billion yuan ($58.34 billion) yesterday, according to For the same mechanism…

China’s new news agency, Xinhua, quoted the central bank as saying that this step aims to maintain acceptable and abundant cash liquidity in the banking system.

Reverse repurchases, known as “reverse repo,” are operations in which the central bank buys securities from commercial banks through bidding, with the agreement to sell them to them again in the future.

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In a related manner, the exchange rate of the Chinese yuan recorded a strong increase against the dollar in transactions, as the price of the Chinese currency today reached 7.1031 yuan per dollar, compared to 7.1132 yuan last Friday, an increase of 101 Chinese pips.

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