China’s PBC deploys 37.3b yuan reverse repo

The People’s Bank of China (PBC) conducted a seven-day reverse repo operation on Thursday, injecting 37.3 billion yuan into the banking system at an interest rate of 1.50 per cent.

As 2024 approaches its end, the Chinese central bank aims to “keep liquidity adequate at a reasonable level in the banking system,”

Reverse repos are a key monetary policy tool used by central banks to regulate liquidity. Through this mechanism, the PBC purchases securities from commercial banks via a bidding process, with a commitment to sell them back at a later date.

Attribution: PBC’s website