China’s c. bank offers 277.3b yuan off reverse repo

By Nada Ali On Aug 28, 2024

People’s Bank of China (PBC) announced on Wednesday a seven-day 277.3 billion-yuan reverse repo at an interest rate of 1.7 per cent.

The Chinese central bank aims to maintain stable liquidity within the banking system as the first half of 2024 draws to a close.

Notably, the PBC offered 472.5 billion yuan on Tuesday 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

August 27 August 28 banking system central banks China China's banking system China's centeral bank China's central bank