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China’s central bank adds liquidity via reverse repos

China’s central bank conducted 383 billion yuan (about 53.97 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Tuesday.

It also conducted 85 billion yuan of 14-day reverse repos at an interest rate of 1.95 percent.

Channel 1

The move aims to keep liquidity reasonable and ample at the end of the year, the People’s Bank of China said in a statement.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

Xinhua
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