The People’s Bank of China pumped $26.3 billion into the financial system through seven-day reverse repo operations in the final trading days of 2022 as a stimulus measure.
The greatest weekly cash injection since 2019 is being used to improve the liquidity of financial institutions.
Reverse repurchases, also referred to as “reverse repo” transactions, are financial transactions in which the central bank buys assets from commercial banks through targeted offers with the intention of reselling them later.
In an effort to boost borrowing by individuals and improve economic growth statistics, China is attempting to cut short-term interest rates.
