China’s PBC announces 798.9b yuan off reverse repos

People’s Bank of China (PBC) announced on Thursday a seven-day 798.9 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 the first half of 2024 draws 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