BEIJING, Sept. 2 (Greenpost) — The People’s Bank of China, China’s central bank, conducts 150 billion yuan worth of 7-day reverse repos at a yield of 2.35 percent in Tuesday’s open market operation.

Traders note that the move shows the central bank’s intention to inject short-term liquidity into the financial system.

Since the end of June, the central bank continued to pump in liquidity through its routine open market operations and step up sales of reverse repos in August to boost cash supply in the financial system.

On last Friday, the central bank injected 140 billion yuan of liquidity into the market via a 6-day short-term liquidity operation. The amount was the same as a similar contract sold on August 26. The central bank also injected 60 billion yuan into the market via a 7-day SLO on August 28.

China’s central bank lowered key interest rates and cut the reserve requirement ratio on August 26, marking the fourth RRR cut in nearly seven months and the fifth round of interest cut in no more than nine months.

Traders noted that the central bank was expected to employ multiple monetary policy tools such as reverse repo sales, interest rate and RRR cuts to keep liquidity environment stable in the future. (Edited by Yang Yifan, yangyifan@xinhua.org)