China’s PBC offers 369.2b yuan off reverse repos

By Nada Ali On Aug 14, 2024

People’s Bank of China (PBC) announced on Wednesday seven-day 369.2 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.

Notably, the PBC offered 385.7 billion yuan on Tuesday through seven-day reverse repurchase agreements, maintaining the same interest rate.

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

Subediting: M. S. Salama

August 13 August 14 banking system central banks China China's banking system China's centeral bank China's central bank