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China’s central bank injects liquidity into market on May 28

Updated: May 28,2019 4:05 PM     Xinhua

BEIJING — China’s central bank injected funds into the monetary market on May 28 to offset mature reverse repos and maintain ample liquidity in the banking system.

The People’s Bank of China conducted 150 billion yuan (about $21.75 billion) of seven-day reverse repos at an interest rate of 2.55 percent.

Meanwhile, 80 billion yuan of reverse repos will mature on May 28.

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.

China will keep its prudent monetary policy “neither too tight nor too loose” while maintaining market liquidity at a reasonably ample level in 2019.