Latest Headlines
Central Bank Pumps More Money into Market
  ·  2016-03-31  ·   Source:

China's central bank pumped more money into the market to ease a liquidity strain on March 31.

The People's Bank of China (PBOC) conducted 100 billion yuan ($15.4 billion) of 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.

The reverse repo was priced to yield 2.25 percent, unchanged from the injection of 60 billion yuan ($9.24 billion), according to a PBOC statement. The injection has resulted in a net 40 billion yuan ($6.16 billion) being pumped into the market on March 31, offset by 60 billion yuan($9.24 billion) in maturing reverse repos.

The move follows a week-long rise in money-market rates as maturing reverse repos continued to drain liquidity from the market while commercial lenders hoard cash to meet quarter-end regulatory reserves.

In the interbank market on March 31, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, climbed by 1.3 basis points to 2.017 percent, the highest level in a month. Shibor for two-week loans rose the most, by 5.8 basis points to 2.788 percent.

(Xinhua News Agency March 31, 2016)

China
Opinion
World
Business
Lifestyle
Video
Multimedia
 
China Focus
Documents
Special Reports
 
About Us
Contact Us
Advertise with Us
Subscribe
Partners: China.org.cn   |   China Today   |   China Pictorial   |   People's Daily Online   |   Women of China   |   Xinhua News Agency   |   China Daily
CGTN   |   China Tibet Online   |   China Radio International   |   Global Times   |   Qiushi Journal
Copyright Beijing Review All rights reserved 京ICP备08005356号 京公网安备110102005860