Central Bank of China continues to increase market liquidity

Beijing. Jul 20. Silkroadnews - China’s central bank continued to inject liquidity into the financial system through open market operations, Xinhua reports.
China’s central bank injected 80 billion yuan (about $11.9 billion) into the market through the reverse repurchase agreements after pumping of a total of 390 billion yuan through similar operations earlier this week.
A reverse repo is a process through which the central bank offers and purchases securities from commercial banks, with an agreement to sell them back in the future.
The central bank held a seven-day reverse repo with an interest rate of 2.55% on 60 billion yuan and a 14-day reverse repo with an interest rate of 2.7% on 20 billion yuan.
The central bank increasingly relies on open market operations, rather than changing interest rates or reserve ratios to more flexibly and reasonable manage liquidity, the publication reads.
This year China will pursue a reasonable and neutral monetary policy, as it seeks to balance economic growth and risk prevention.