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China injects 50 bn yuan into market

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IANS Beijing
Last Updated : Sep 22 2015 | 3:42 PM IST

China's central bank pumped 50 billion yuan ($7.85 billion) into the money market via reverse re-purchase agreement (repo) on Tuesday, the first cash injection this week.

The yield for the seven-day reverse repo stood at 2.35 percent, Xinhua news agency quoted the Bank of China's (PBOC) statement as saying.

Under a reverse repo, the central bank purchases securities from large banks and brokerages with the agreement to sell them in the future as an effective means to tackle short-term money shortages in the market.

The cash injection will offset the effects from earlier reverse repo due on Tuesday.

Given a stable renminbi (RMB), the money shortage was greatly eased in September and the PBOC's operations were smaller than those in August.

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First Published: Sep 22 2015 | 3:30 PM IST

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