(Yicai Global) Nov. 26 -- The reference rates at which Shanghai banks lend unsecured funds to other banks in the short-term have decreased as the central bank moved on today to add liquidity to money markets through its open market operations.
The overnight class of the Shanghai Interbank Offered Rate, also known as Shibor, fell 28.8 basis points to 2.0280 percent. The seven-day Shibor declined 0.6 basis points to 2.6530 percent. The rate with a three-month maturity hit 3.2730 percent, up 4.3 basis points.
The People's Bank of China issued 7-day reverse bond repurchase agreements worth CNY30 billion (USD4.3 billion) at the rate of 2.55 percent today. It also made CNY20 billion worth of 14-day reverse repos available at the rate of 2.7 percent. Some CNY140 billion worth of reverse repos reached maturity during the day.
The injections are to ensure the liquidity of the banking system from the impact coming from financial institutions' raised reserve requirements and new government bonds, PBOC said in a statement.
Editor: Emmi Laine