The People's Bank of China (the central bank) maintained its pace of injecting liquidity into the banking system at the beginning of the new week, as it injected today, Monday, 2 billion yuan (281.5 million dollars) through the 7-day reverse repurchase mechanism at an interest rate of 1.8%, which is the same amount it injected daily throughout last week according to the same mechanism.

The central bank says this step aims to maintain an acceptable and ample liquidity in the banking system, according to Xinhua News Agency.

The reverse repurchase, known as "reverse repo," is a process where the central bank buys securities from commercial banks through bidding, with an agreement to sell them back in the future.

In the currency market, the Chinese yuan rose slightly against the dollar. The reference rate set by the People's Bank of China was 7.1043 yuan per dollar, up by 3 pips from the rate on Friday at the end of last week's trading, which was 7.1046 yuan.

Chinese rules allow the yuan to rise or fall by 2% from the central bank's reference rate on each trading day in the spot foreign exchange market.

It is worth mentioning that the reference rate for the yuan against the dollar is determined based on the buying rates provided by major financial institutions before the start of interbank market trading each day.