BEIJING: The People’s Bank of China continued to insert funds into the financial system via open market operations Friday, APP reported. According to the People’s Bank of China it has conducted about $ 706.61 million of 7-day reverse repos at an interest rate of two percent.
China’s Bank Adds Liquidity
The transfer is aimed at keeping liquidity practical and plenty in the banking system, Chines central bank said. A reverse repo is a procedure in which the central bank purchases securities from commercial banks via bidding, with deal to sell them back in the future.
Earlier, Financial Times quoted two of the senior Pakistani officials who said that China had committed to help Pakistan meet two crucial debt repayments in June worth a total of $2.3bn by providing new funds immediately after Islamabad makes the payments.
The refinancing of the commercial loans worth $1.3bn and a Chinese government loan of $1bn would help Pakistan avert immediate default, the Pakistani officials said.
