CHINA China's central bank continues to skip reverse repos

CHINA

China's central bank continues to skip reverse repos

Xinhua

11:14, July 11, 2019

BEIJING, July 11 (Xinhua) -- China's central bank continued to skip open market operations via reverse repos on Thursday, citing reasonably adequate liquidity in the banking system.

   The overall liquidity in the banking system remained at a reasonably sufficient level despite a minor decline partly due to maturing reverse repos, the People's Bank of China said in a statement.

   On Thursday, 100 billion yuan (about 14.6 billion U.S. dollars) of reverse repos matured.

   The central bank has skipped reverse repos for 14th consecutive working days.

   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.

   China will keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.

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(Photo: VCG)

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