China's central bank injects 400b yuan into market Tuesday

China's central bank pumped 400 billion yuan (US$57 billion) into the banking system on Tuesday, after an injection of 1.2 trillion yuan into the system via reverse repos on Monday.

The People's Bank of China input 380 billion yuan into the market through seven-day reverse repos at an interest rate of 2.4 percent, and conducted 120 billion yuan of 14-day reverse repos at an interest rate of 2.55 percent.

As 100 billion yuan of reverse repos matured Tuesday, this led to a net injection of 400 billion yuan.

The move aims to provide reasonable and sufficient liquidity in the banking system during the special time to prevent and control the epidemic, said the central bank.

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.

The country will continue to implement a proactive fiscal policy and prudent monetary policy, according to the annual Central Economic Work Conference held in December 2019.