Home » China’s central bank continues to add liquidity via reverse repos

China’s central bank continues to add liquidity via reverse repos

by Dubaiforum

BEIJING, 3rd March, 2023 (WAM) — China’s central bank continued to inject funds into the financial system through open market operations on Friday, state news agency (Xinhua) reported.

On its website, the People’s Bank of China said that it had conducted 18 billion yuan (about US$2.6 billion) of seven-day reverse repos at an interest rate of 2 percent.

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.

Rola AlGhoul/ Esraa Esmail

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