China’s PBC offers 620m yuan off reverse repos

China’s central bank, the People’s Bank of China (PBC), injected on Tuesday 620 million yuan into the banking system through seven-day reverse repos at an interest rate of 1.7 per cent.

This move aims to maintain stable liquidity within the banking system as the first half of 2024 draws 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