China’s PBC offers 74.5b yuan off reverse repos

People’s Bank of China (PBC) announced on Monday seven-day 74.5 billion-yuan reverse repos at an interest rate of 1.7 per cent.

This move aims to maintain stable liquidity within the banking system as the first half of 2024 draws to a close.

A reverse repo is a tool used by central banks to manage liquidity. The PBC purchases securities from commercial banks through a bidding process, with an agreement to resell them back in the future.

Attribution: PBC’s website