China’s c. bank adds 385.7b yuan off reverse repos

China’s central bank, the People’s Bank of China (PBC), injected on Tuesday 385.7 billion yuan into the banking system through seven-day 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 74.5 billion yuan on Monday 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