China’s c. bank issues 233b yuan off reverse repos
People’s Bank of China (PBC) announced on Tuesday a seven-day 233 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.
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: Y.Yasser