China's central bank continues to inject liquidity into market
The People's Bank of China pumped 30 billion yuan (about 14.9 billion U.S. dollars) into the market through reverse repos after injecting 30 billion yuan on Wednesday.
China will maintain a prudent and neutral monetary policy in 2018 as it strives to balance growth and risk prevention.
BEIJING, July 19 (Xinhua) -- China's central bank continued to inject liquidity into the financial system through open market operations on Thursday.
The central bank conducted 70 billion yuan of seven-day reverse repos at an interest rate of 2.55 percent and 30 billion yuan of 14-day reverse repos at 2.7 percent.
A reverse repo is a process by which the central bank bids and buys securities from commercial banks, with an agreement to sell them back in the future.
The central bank increasingly relies on open-market operations, rather than changes in interest rates or reserve requirement ratios, to manage liquidity in a more flexible and targeted manner.