(Yicai Global) Jan. 30 -- China's central bank has injected fresh funds into the country's financial system after suspended such operations for the past seven working days.
The People's Bank of China conducted a 14-day reverse repo today to the tune of CNY50 billion (USD7.4 billion) against no maturing previous reverse repos.
The 14-day rate was offered at 2.7 percent, unchanged from the previous open market operations.
The move pushed the Shanghai Interbank Offered Rate for shorter-term loans lower and the overnight SHIBOR was down 7.59 basis points at 2.0021 percent. The one-week term rate fell 0.10 basis point to 2.7650 percent. The SHIBOR for one-month loans still increased 0.5 basis point to 2.8400 percent.
Open market operations are conducted for the purpose of keeping liquidity in the banking system "reasonably ample," the PBOC said in a statement today. With the approaching Chinese New Year holiday, the central bank traditionally continues adding liquidity into the market to satisfy the increasing needs.
