BUSINESS China's central bank skips reverse repos


China's central bank skips reverse repos


14:56, July 06, 2020

Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing. (Photo: Sipa)

BEIJING - The People's Bank of China (PBOC), the country's central bank, skipped open market operations via reverse repos on Monday.

Liquidity in the banking system stays at a relatively high level that can absorb the impacts of maturing reverse repo contracts and financial institutions' deposit reserves, the PBOC said in an online statement.

A total of 180 billion yuan ($25.47 billion) of reverse repos matured Monday.

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 pursue a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.

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