Chinese central bank pumps $70.4 billion into the banking ‎system

Today, the People’s Bank of China, the central bank, pumped 501 billion yuan ($70.4 billion) into the banking system through 7-day reverse repurchase operations with an interest rate of 1.8%, after it pumped 664 billion yuan ($93.32 billion) on Friday at the end of the last trading week, based on the same mechanism, according to what was reported by the new Chinese news “Xinhua”.

The Central Bank stated that this step aims to maintain acceptable and abundant cash liquidity in the banking system, as reverse repo, known as “reverse repo,” is an operation in which the Central Bank buys securities from commercial banks through submitting bids, with an agreement to sell it to her again in the future

Relatedly, the exchange market recorded a slight decline in the price of the Chinese yuan against the dollar in today’s trading, after significant increases over the past days. The price of the Chinese currency reached 7.1159 yuan per dollar, compared to 7.1151 yuan on Friday, a decline of 8 Chinese pips.

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