The move came after the central bank paid 80 billion yuan as time deposits
An operation to make the Chinese market more secure and solid by the People’s Bank of China (PBOC), which injected 30 billion yuan (about $ 4.35 billion) into the financial system, through open market operations.
The central bank conducted seven-day reverse repo transactions at an interest rate of 2.55% to maintain sufficient liquidity. In addition, the transaction comes after the central bank has paid 80 billion yuan as time deposits at commercial banks under central treasury management.
China, following this pattern, will maintain its prudent monetary policy
A reverse repo is a process in which the central bank buys securities from commercial banks through offers, with an agreement to resell them in the future.
China, following this economic-financial pattern, will maintain its prudent monetary policy “neither too tight nor too weak”. All this, in any case, while maintaining market liquidity at a reasonably wide level in 2019.
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