China’s PBC offers 33.3b yuan off reverse repo

By Nada Ali On Dec 2, 2024

Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a branch of a commercial bank in Beijing, China. Photo Credit: REUTERS

People’s Bank of China (PBC) announced on Monday a seven-day 33.3 billion-yuan reverse repo at an interest rate of 1.50 per cent.

The Chinese central bank aims to maintain stable liquidity within the banking system as 2024 is coming to a close.

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