China's central bank injects 10b yuan into market

BEIJING -- China's central bank Friday pumped cash into the banking system via reverse repos to maintain liquidity.

The People's Bank of China injected 10 billion yuan (about $1.44 billion) into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on the website of the central bank.

The move was intended to maintain reasonable and ample liquidity in the banking system, the central bank said.

A total of 20 billion yuan of reverse repos matured Friday.

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.

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