China’s central bank on Thursday pumped more money into the market to ease a liquidity strain.
The People’s Bank of China (PBOC) conducted 130 billion yuan (20 billion U.S. dollars) in seven-day reverse repurchase agreements (repo), a process in which central banks purchase securities from banks with an agreement to resell them in the future.
The reverse repo was priced to yield 2.25 percent, unchanged from Wednesday’s injection of 100 billion yuan, according to a PBOC statement.
The move followed a net injection of 100 billion yuan into the financial system on Tuesday.
On Thursday’s interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, was up by 0.1 basis points to 2.001 percent.
via Xinhua
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza