August 5, 2020

The Chinese central bank injects 17.300 million dollars into the financial system



The People's Bank of China (central) today made a liquidity injection of 120 billion yuan (17.3 billion dollars, 14.9 billion euros) in the country's financial system through open market operations.

The Chinese issuer carried out this operation through reverse repurchase agreements (also known as "repos"), an instrument through which securities are sold conditioned on an agreement to repurchase them at a later date, according to a statement from the central bank cited by the agency. official Xinhua.

The "repos" have a maturity of seven days and an interest rate of 2.55%.

The Chinese central bank's intervention is aimed at easing liquidity tensions and offsetting the impact of payments on new government bonds, Xinhua said.

The central bank, which has increasingly opted for open market operations in its liquidity management, instead of reducing interest rates or mandatory reserve ratios, also indicated that it will continue to implement a "prudent" monetary policy. and neutral. "

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