China’s PBC issues 250b yuan to maintain liquidity

The People’s Bank of China (PBC) on Thursday issued 250 billion yuan ($35.24 billion) of seven-day reverse repos at an interest rate of 1.8 per cent to maintain stable liquidity in the banking system at the end of the quarter, as reported by Xinhua.

This involves the central bank buying securities from commercial banks through bidding, with an agreement to sell them back in the future.