China’s central bank adopts 14-day reverse repos

The People’s Bank of China (PBOC) announced 14-day reverse repurchase agreements (repos) on Sunday worth 135 billion yuan (about $19.2 billion) to maintain liquidity in the banking system.

The 14-day reverse repo is a type of short-term loan the central bank uses to increase liquidity ahead of the Spring Festival, which falls on February 10,2024, according to PBOC’s statement.

A reverse repo in China is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.