China steps up liquidity with 2b yuan reverse repo

The People’s Bank of China (PBC) has injected on Thursday two billion yuan ($281.21 million) into the banking system through seven-day reverse repos at an interest rate of 1.8 per cent.

This move aims to maintain reasonable and ample liquidity within the Chinese financial system.

The central bank purchases securities from commercial banks through bidding. These securities are then returned to the banks after a predetermined period, usually seven days in this case.

Attribution: Xinhua