China’s c. bank offers 577.7b yuan off reverse repos

By Nada Ali On Aug 15, 2024

People’s Bank of China (PBC) announced on Thursday seven-day 577.7 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 369.2 billion yuan on Wednesday 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

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