China’s PBOC to conduct 14-day reverse repo operations
Effective immediately, the move is aimed at maintaining abundant liquidity in the banking system and meeting the differentiated funding needs of various participating institutions in an improved manner, a statement by the central bank said.
The People’s Bank of China will conduct 14-day reverse repo operations with fixed volumes through interest-rate bidding, with winning bids determined at multiple price levels, it announced today.
Effective immediately, the move is aimed at maintaining abundant liquidity in the banking system and meeting the differentiated funding needs of various participating institutions in an improved manner.
The timing and scale of these operations will be determined based on liquidity management requirements, a state-controlled news outlet reported.
A reverse repo is a process in which the central bank purchases securities from commercial banks through a bidding process, with an agreement to sell them back in the future.
Fibre2Fashion News Desk (DS)
