China’s central bank on Wednesday added liquidity to the banking system via operations of medium-term lending facility (MLF) and reverse repos.
The People’s Bank of China (PBOC) injected 481 billion yuan (about 70.03 billion U.S. dollars) into the market through one-year MLF with an interest rate of 2.75 percent.
The central bank also conducted 104 billion yuan of seven-day reverse repos at an interest rate of 2 percent.
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.