BUSINESS China's central bank continues to skip reverse repos Friday

BUSINESS

China's central bank continues to skip reverse repos Friday

Xinhua

12:49, July 26, 2019

BEIJING, July 26 (Xinhua) -- China's central bank continued to skip open market operations via reverse repos on Friday, citing reasonably adequate liquidity in the banking system.

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(Photo: VCG)

The overall liquidity in the banking system remained at a reasonably sufficient level, with the central bank's deposits offsetting matured reverse repos, the People's Bank of China (PBOC) said in a statement.

The PBOC deposited 100 billion yuan (about 14.54 billion U.S. dollars) as time deposits with commercial banks under the central treasury cash management.

Reverse repos worth 100 billion yuan matured Friday.

A reverse repo is a process by 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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