BEIJING: China’s central bank on Monday continued to pump cash into the banking system via reverse repos to maintain liquidity. This has followed an injection of 150 billion yuan and 70 billion yuan last Friday and Thursday, respectively. The move aims to keep liquidity in the banking system at a reasonably sufficient level, the central bank said. A total of 500 billion yuan of the medium-term lending facility (MLF) matured Monday, resulting in a net withdrawal of 380 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.

Source: Manila Times June 08, 2020 17:48 UTC