The People’s Bank of China (PBC) announced on Tuesday a seven-day 55 billion-yuan reverse repo at an interest rate of 1.50 per cent.
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: Amwal Al Ghad English
Subediting: M. S. Salama