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China's central bank continues cash injection Wednesday

Source: Xinhua| 2019-05-22 10:49:24|Editor: Liu
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BEIJING, May 22 (Xinhua) -- China's central bank Wednesday continued to inject liquidity into the money market through open market operations.

The People's Bank of China (PBOC) conducted 20 billion yuan (about 2.9 billion U.S. dollars) of seven-day reverse repos at an interest rate of 2.55 percent.

No reverse repo is due on Wednesday.

The PBOC said in a statement that Wednesday's operation is aimed at offsetting the impact of factors such as tax payment season.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China will keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.

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