BUSINESS China's central bank skips reverse repos

BUSINESS

China's central bank skips reverse repos

Xinhua

10:05, March 18, 2020

8a536d68a512466db3ac8fa4fd0ca83e.jpg

File photo

BEIJING, March 18 (Xinhua) -- The People's Bank of China, the country's central bank, skipped reverse repos Wednesday, citing reasonably sufficient liquidity in the banking system.

No reverse repos matured Wednesday.

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.

Facing potential economic shocks from the novel coronavirus outbreak, China's financial authorities pledged to pay more attention to policy flexibility to keep reasonably sufficient liquidity and release the potential of the loan prime rate reform.

The central bank has earlier stated that China will implement the "dynamic adjustment" of targeted reserve requirement ratio cut policies in the near future for better use of inclusive financing to shore up the virus-hit economy.

Related Stories

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