Industries News.Net

5 billion yuan drained from market Tuesday

12 Jan 2021

BEIJING, Jan. 12 (Xinhua) -- China's central bank injected 5 billion yuan (about 771.33 million U.S. dollars) into the banking system through seven-day reverse repos at an interest rate of 2.2 percent on Tuesday.

With 10 billion yuan of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 5 billion yuan from the market.

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.

China's central bank has pledged to make its prudent monetary policy more targeted and flexible to adapt better to the needs of high-quality development and put more focus on the efficiency of financial services to support the real economy.

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