The People's Bank of China (the central bank) of China pumped 244 billion yuan into the banking system in two tranches through reverse repurchase operations, pumping 184 billion yuan ($94.25 billion) through 7-day reverse repurchase operations at an interest rate of 8.1 percent. The bank also injected 60 billion yuan, according to the same mechanism for 14 days, at an interest rate of 1.95 percent. According to the Central Bank, this step aims to maintain acceptable and abundant cash liquidity in the banking system.
It is noteworthy that reverse repurchases are operations in which the central bank buys securities from commercial banks through submitting bids, with an agreement to sell them to them again in the future.
Source (Al-Raya Qatari newspaper, adapted)
