The People’s Bank of India (PBOC) injected a net 20 billion yuan into the banking system through open market operations on Wednesday, according to Xinhua.
The central bank poured in 120 billion yuan into the market through seven-day reverse repurchase agreements (repos) at an interest rate of 2.2%, overcompensating for the 100 billion yuan drained due to reverse repo maturity.
China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year’s government work report.
A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
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