China’s PBC issues 172.6b yuan off reverse repos

People’s Bank of China (PBC) announced on Monday a seven-day 172.6 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 2024 is coming 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