Beijing, May 30 (IANS) China’s central bank on Monday pumped more money into the market to ease a liquidity strain.
The People’s Bank of China (PBOC) conducted 65 billion yuan ($9 billion) in seven-day reverse repurchase agreements (repo), a process in which central banks purchase securities from banks with an agreement to resell them in the future, Xinhua news agency reported.
The reverse repo was priced to yield 2.25 percent, unchanged from last Friday’s injection of 95 billion yuan and Thursday’s 75 billion yuan, according to a PBOC statement.
The move followed a net injection of 45 billion yuan into the financial system on Friday.
On Monday’s interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, rose 0.1 basis points to 2.002 percent.
The Shibor for seven-day loans also increased 0.1 basis points to 2.334 percent.
The Shibor for three-month loans rose 0.35 basis points to 2.9455 percent.