China’s PBC offers 460b yuan off reverse repos
People’s Bank of China (PBC) announced on Tuesday a fourteen-day 460 billion-yuan reverse repo at an interest rate of 1.85 per cent.
The Chinese central bank aims to maintain stable liquidity within the banking system as the first half of 2024 draws to a close.
Notably, the PBC offered 234.6 billion yuan on Monday, September 23rd, 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
