China’s PBC auctions 150.9b yuan off reverse repo

By Nada Ali On Aug 29, 2024

Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a branch of a commercial bank in Beijing, China. Photo Credit: REUTERS

People’s Bank of China (PBC) announced on Thursday a seven-day 150.9 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 277.3 billion yuan on Wednesday 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 28 August 29 banking system central banks China China's banking system China's centeral bank China's central bank