Chinese central bank’s open market operations led to net liquidity injection into the banking system this past week.
The People’s Bank of China injected 614 billion yuan (95.05 billion U.S. dollars) into the market through reverse repos in the past week, while 16 billion yuan of reverse repos matured, resulting in 598 billion yuan of net liquidity injection.
A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
