In a move to support the economy, the People's Bank of China (PBOC) introduced the latest injection measure by injecting $70 billion (500 billion yuan) into the money market.
The move aims to help banks have enough cash to lend and keep the financial system stable, especially when the economy faces sluggish demand and issues in the real estate sector.
The PBOC uses "outright reverse repurchase agreements" to inject this cash.
This tool allows the central bank to buy government and corporate bonds from major financial institutions for up to one year.
This long-term option provides more support than the usual short, seven-day step.
Over the past three months, banks faced a shortfall of 481 billion yuan due to the repayment of a one-year loan called the medium-term loan facility (MLF).
As savings decline and more people move their money into stocks, banks face additional pressure.
Experts believe this new tool will play a bigger role in the future to keep the economy running smoothly.
Although this method can be more expensive than other measures such as reducing reserve requirements, this method adds important support.
The PBOC's efforts highlight its commitment to maintain balance and ensure stable economic growth.
