Beijing - Saba:
The People's Bank of China (the central bank) announced today, Thursday, pumping 104.5 billion yuan (about $14.58 billion) through the seven-day reverse repurchase mechanism at an interest rate of 1.5%.
The Chinese Central Bank said that this step aims to maintain acceptable and abundant cash liquidity in the banking system.
The 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 7.1692 yuan per dollar, an improvement of 22 Chinese pips from yesterday's level of 7.1714 yuan.
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