Beijing - Saba:
The People's Bank of China (the central bank) injected 89.1 billion yuan today, Monday, through the seven-day reverse repurchase mechanism at an interest rate of 1.5 percent.
Chinese media reported that the Chinese yuan rose against the dollar, and the People's Bank of China's indicative price reached 7.1889 yuan per dollar, an increase of four Chinese pips from its level on Friday at the end of last week's trading, which was 7.1993 yuan.
Chinese rules allow the yuan to rise or fall by two percent from the central bank's indicative price on each trading day in the spot foreign exchange market.
Reverse repurchase, also known as reverse repo, is an operation in which the central bank buys securities from commercial banks through bidding, with an agreement to sell them back to them in the future.
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