New Delhi: China's central bank has pumped 642.4 billion yuan ($90.23 billion) of cash into its markets. It gave this information on Wednesday. This cash has been pumped in through a seven-day reverse repo. This shows China's desperation. Despite taking many measures, its economy is not picking up pace. This step is part of China's same exercise. Injecting cash will bring more liquidity to the market. Banks will have more money to lend. This will help businesses to expand and create jobs. Recently, China had announced a big stimulus package. After this, foreign institutional investors (FIIs) withdrew money from the Indian markets and turned to China. However, many experts had predicted at that time that this boom would prove to be a 'four-day moonlight'. The dragon is upset with India's growing status and anti-China sentiment in the world.

What did the Central Bank of China say?
 

China's central bank said on Wednesday it has injected 642.4 billion yuan ($90.23 billion) of liquidity into the market through a seven-day reverse repo. The People's Bank of China (PBOC) said in an online statement that this was done to maintain adequate liquidity in the banking system. This will help ease the pressure arising from the maturity of the medium-term lending facility (MLF) and reverse repo loans.

What is reverse repo?

On Wednesday, 789 billion yuan of MLF loans and 61 billion yuan of reverse repo loans matured, taking the total withdrawal from the market to 207.6 billion yuan. China's central bank says the move is to keep "liquidity in the banking system reasonably adequate." Reverse repo is a method through which the central bank lends short-term loans to commercial banks. It helps control cash flow in the market and keeps interest rates stable. ($1 = 7.1194 Chinese yuan)