Chinese Central Bank Undertakes 160B Yuan in Reverse Repos After 36 Trading Day Absence


The People’s Bank of China (PBOC) broke its protracted absence from reverse repo operations on Tuesday in a bid to keep banking sector liquidity “rationally ample.”

On 17 December the Chinese central bank announced 160 billion yuan in reverse repos via interest rate tenders, with maturity of 7 days and a rate of 2.55%.

According to PBOC the move is intended to “offset the impact of factors including the tax period, government bond issuance deposits and the payment of statutory reserves by financial institutions, in order to keep banking system liquidity rationally ample.”

The move marks the Chinese central bank’s resumption of reverse repo operations following a 36-trading day absence.