Beijing - Saba:
The People's Bank of China (PBOC) on Monday said it had injected 481 billion yuan (about $67.1 billion) through its seven-day reverse repo mechanism at an interest rate of 1.5%.
The PBOC stated that these steps aim to maintain adequate and ample liquidity in the banking system.
Reverse repos, also known as reverse repos, are operations 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 PBOC's reference rate reached 7.1688 yuan per dollar, down 50 pips from its closing price of 7.1738 yuan on Friday.
Chinese regulations allow the yuan to rise or fall by two percent relative to the central bank's reference rate on each trading day in the spot foreign exchange market.
It is worth noting that the reference rate for the yuan against the dollar is determined based on the buying prices offered by major financial institutions before the start of daily interbank trading.
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