China's Central Bank Injects More Money into Market
Beijing - QNA
China's central bank continued to pump money into the market to ease a liquidity strain this week.
The People's Bank of China (PBOC) conducted 395 billion yuan about (61.16 billion US dollars) of seven-day reverse repurchase agreements (repo) from Monday to Friday, a process in which central banks purchase securities from banks with an agreement to resell them in the future.
The reverse repos were all priced to yield 2.25%, according to China's (Xinhua) News Agency.
This week's injections have resulted in a net 15 billion yuan pumped into the market, offset by 380 billion yuan in maturing reverse repos.
This follows a net injection of 180 billion yuan into the financial system last week.
The continuous injections showed that the country's money supply was a bit tight, analysts said.
On Friday's interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, fell to 2.014%. The rate reached 2.017% on Thursday, the highest level in a month.
The Shibor for two-week loans rose the most on Friday, by 3.3 basis points to 2.821%.