ZCZC
BCN-02
CHINA-BANK-YUAN
China’s central bank conducts 80 bln yuan of reverse repos
BEIJING, Feb 2, 2021 (BSS/XINHUA) – China’s central bank on Tuesday
conducted 80 billion yuan (about 12.36 billion U.S. dollars) of reverse repos
to maintain reasonably ample liquidity in the banking system.
The interest rate for the seven-day reverse repos was set at 2.2 percent,
according to a statement on the website of the People’s Bank of China.
With 2 billion yuan of reverse repos maturing on the same day, the move led
to a net liquidity injection of 78 billion yuan into the market.
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’s central bank has pledged to make its prudent monetary policy more
targeted and flexible to adapt better to the needs of high-quality
development and put more focus on the efficiency of financial services to
support the real economy.
BSS/XINHUA/GMR/0930 hrs