The People’s Bank of China (PBOC) announced on 7 December that it had undertaken 50 billion yuan (approx. USD$7.65 billion) in 7-day reverse repo operations that day via auction, at an unchanged rate of 2.20%.
On the same date 150 billion yuan in reverse repos and 300 billion yuan in medium term lending facilities (MLF) matured, while the remainder of the week is set to see the maturation of a further 50 billion yuan in central bank instruments.
7 December marked the 15th consecutive trading day that PBOC has engaged in reverse repo operations.
PBOC said that the reverse repo operations on Monday were for the purpose of maintaining rationally ample liquidity in the Chinese banking system.