BEIJING, Aug. 27 (Xinhua) -- China's central bank injected 80 billion yuan (about 11.3 billion U.S. dollars) into money markets on Tuesday through seven-day reverse bond repurchase agreements, according to the bank's latest statement.
On a net basis, the People's Bank of China (PBOC) injected 30 billion yuan via open market operations for the day, with 50 billion yuan reverse repos maturing on Tuesday.
The interest rate for the operation remained at 2.55 percent. The move aimed to counteract the impact of reverse repos set to expire in the near future and to maintain liquidity in the market, according to the statement.
A reverse repos is a liquidity-injecting process in which the central bank purchases securities from commercial banks through bidding with an agreement to sell them back in the future.
China has vowed to keep its prudent monetary policy "neither too tight nor too loose" and make counter-cyclical adjustments in a timely and moderate manner. The central bank said in its second-quarter monetary policy report that the country will not resort to flood-like stimulus policies.
