Beijing - Saba:
The People's Bank of China (the central bank) injected 24.8 billion yuan (about 3.45 billion dollars) today, Thursday, through the seven-day reverse repurchase mechanism at an interest rate of 1.5 percent.
The bank said in a statement: These steps aim to maintain acceptable and abundant cash liquidity in the banking system, according to the Xinhua News Agency.
Reverse repurchase, known as "reverse repo", is an operation in which the central bank buys securities from commercial banks through bidding, with an agreement to sell them back to them in the future.
In the foreign exchange market, the Chinese yuan rose against the dollar. The People's Bank of China's reference rate reached 7.1879 yuan per dollar, down five Chinese pips from yesterday's level of 7.1884 yuan.
Chinese rules allow the yuan to rise or fall by two percent from the central bank's reference rate each trading day in the spot foreign exchange market.
It is worth noting that the reference rate of the yuan against the dollar is determined based on the buying prices offered by major financial institutions before the start of daily interbank market transactions.
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