PBOC pumps more money into market

A clerk counts yuan bills at a bank in Huaibei, East China's Anhui province. [Photo/IC]

BEIJING - China's central bank on Wednesday pumped more money into the market to ease a liquidity strain.

The People's Bank of China (PBOC) conducted 80 billion yuan ($12.3 billion) in seven-day reverse repurchase agreements (repo), a process in which central banks purchase securities from banks with an agreement to resell them in the future.

The reverse repo was priced to yield 2.25 percent, unchanged from Tuesday's injection of 70 billion yuan, according to a PBOC statement.

The move followed a net injection of 20 billion yuan into the financial system on Monday.

In Wednesday's interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, stayed flat at 1.999 percent.