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People’s Bank of China injects $18.91 billion to boost liquidity in banking system

The People’s Bank of China (PBOC) announced on Monday that it will be injecting 128 billion yuan ($18.91 billion) into the financial system through a seven-day reverse repo at a second interest rate. This move is aimed at maintaining stable liquidity in the banking system by the end of the month.

According to the PBOC, the cash injection is part of a reverse repo process in which the central bank purchases securities from commercial banks with the agreement to resell them in the future. This helps to increase the money supply in the banking system and boost liquidity.

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