PBOC adds liquidity to the banking system

The People's Bank of India (PBOC) injected a net 20 billion yuan into the banking system through open market operations on Wednesday, according to Xinhua. 

The central bank poured in 120 billion yuan into the market through seven-day reverse repurchase agreements (repos) at an interest rate of 2.2%, overcompensating for the 100 billion yuan drained due to reverse repo maturity.  

China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report. 

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.