The People’s Bank (central) of China announced today, Thursday, the injection of 209 billion yuan ($ 29.1 billion) through reverse repurchase operations for seven days, at an interest rate of 1.8%, as part of its efforts aimed at maintaining liquidity in the banking system acceptable and abundant.
The amount of liquidity that the Chinese Central Bank pumped today is less than what it witnessed in the past days, as it pumped 382 billion yuan ($53.58 billion) yesterday, 385 billion yuan ($53.85 billion) the day before yesterday, and 332 billion yuan ($46.2 billion) last Monday.
A reverse repo, known as a “reverse repo”, is a process in which the central bank buys securities from commercial banks through bidding, with an agreement to sell them back to them in the future.
And the Chinese yuan continued its rise against the dollar for the fourth day in a row, as the People’s Bank (central) of China set the indicative rate for the dollar against the yuan at 7.1811 yuan per dollar, compared to 7.1816 yuan per dollar yesterday.
Chinese rules allow the yuan to depreciate or depreciate by 2% over the central bank rate each trading day in the spot foreign exchange market.