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General Category => General Discussion => Topic started by: Johan Yamin on December 09, 2021, 01:34:54 AM

Title: The Bank of China injects 10 billion yuan to enhance the liquidity of the bankin
Post by: Johan Yamin on December 09, 2021, 01:34:54 AM
The Bank of China injects 10 billion yuan to enhance the liquidity of the banking system.

The People's Bank of China (PBOC) said it would inject 10 billion yuan (about $1.57 billion) into its financial system through a seven-day reverse repo, setting interest rates at 2.2 percent.

The PBOC said today's cash injection aims to properly stabilize liquidity in the banking system.

A reverse repo is a process by which the People's Bank of China buys securities from commercial banks in an agreement to sell them back in the future.

The decision by the People's Bank of China comes at a time of concerns about liquidity in China's real estate sector, with China Evergrande Group's recent failure to settle its $82.5 million in bond interest payments internally. The 30-day grace period, which ended Dec. 6, marks the first time Evergrand has defaulted on its foreign-currency bonds.