BUSINESS China's central bank conducts 180b yuan of reverse repos

BUSINESS

China's central bank conducts 180b yuan of reverse repos

Xinhua

13:57, January 27, 2021

A cashier counts cash at a bank in Nantong, Jiangsu province. (Photo: China Daily)

BEIJING - China's central bank on Wednesday conducted 180 billion yuan ($27.8 billion) of reverse repos to maintain reasonably ample liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.2 percent, according to a statement on the website of the People's Bank of China.

With 280 billion yuan of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 100 billion yuan from the market.

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's central bank has pledged to make its prudent monetary policy more targeted and flexible to adapt better to the needs of high-quality development and put more focus on the efficiency of financial services to support the real economy.

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue