Chinese Central Bank pumps 463 billion yuan into the banking system

The People’s Bank of China (the central bank) pumped 463 billion yuan ($65.16 billion) into the banking system through 7-day reverse repo operations, at an interest rate of 1.8%. China News Agency (Xinhua) quoted the Central Bank in its statement: “This step aims to maintain acceptable and abundant cash liquidity in the banking system.” Reverse repurchases, known as “reverse repo,” are operations in which the central bank buys securities from commercial banks through bidding, with the agreement to sell them again in the future.