Asia

China’s central bank adds liquidity via reverse repos

BEIJING, 25th August, 2022 (WAM) –China’s central bank on Thursday conducted 2 billion yuan (about 291.82 million U.S. dollars) of reverse repos to maintain liquidity in the banking system, Xinhua reported.

The interest rate for the seven-day reverse repos was set at 2 percent, according to the People’s Bank of China.

The move aims to keep stable liquidity in the banking system, the central bank said.

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.

File source

Tags
Show More
Back to top button
Close