China’s c. bank issues 470.1b yuan off reverse repo

People’s Bank of China (PBC) announced a seven-day 470.1 billion-yuan reverse repo on Thursday 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