China's central bank adds liquidity via operations

China's central bank on Thursday added liquidity to the banking system via operations of medium-term lending facility (MLF) and reverse repos.

The People's Bank of China (PBOC) injected 650 billion yuan (US$93.7 billion) into the market through one-year MLF with an interest rate of 2.75 percent.

The central bank also conducted seven-day reverse repos worth 2 billion yuan at an interest rate of 2 percent.

The move aims to maintain reasonable and sufficient liquidity in the banking system, the central bank said.

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.