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Home Economy/Technology

China’s Central Bank adds liquidity via reverse repos

China

The Matters Press by The Matters Press
February 19, 2024
Reading Time: 1 min read
0
Coronavirus hits hard as China records 811 deaths

China’s Central Bank conducted 32 billion Yuan (about 4.51 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent on Monday.

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The move aimed to keep liquidity in the banking system reasonable and ample, the People’s Bank of China said in a statement.

The 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.

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