Today, the People’s Bank of China (the central bank) continued to inject money into the financial system through medium-term lending facilities and open market operations.
The Chinese news agency (Xinhua) reported that the People’s Bank of China injected 170 billion yuan (about 24.75 billion US dollars) through medium-term lending facilities for a period of one year, at an interest rate of 2.75 percent.
The bank said it conducted seven-day reverse repo transactions worth 20 billion yuan, at an interest rate of 2 percent.
The Medium-Term Lending Facility helps commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.
Reverse repo operations, known as (reverse repo), are operations in which the central bank buys securities from commercial banks through bidding, with an agreement to sell them back to them in the future.
