Chinese Central Bank Undertakes 180B Yuan in Reverse Repos on 19 December


The People’s Bank of China has continued to undertake reverse repos on 19 December after breaking a protracted absence from operations earlier int he week.

On 19 December the Chinese central bank announced 180 billion yuan in reverse repos via interest rate tenders, including 140 billion yuan in instruments with 7 day maturities and a rate of 2.55%, and 40 billion yuan in instruments with 14 day maturities and a rate of 2.70%.

On 17 December PBOC undertook 160 billion yuan in reverse repos, bringing an end to a 36-trading day absence from such operations.

According to PBOC the moves are 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.”

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Chinese Central Bank Undertakes 160B Yuan in Reverse Repos