The People’s Bank of China (PBOC) engaged in 2 billion yuan of reverse repo operations on Wednesday, 31 August, for the purpose of “maintaining rationally ample liquidity in the banking system”.
The rate for the 7-day reverse repos was 2.0%, the same as for PBOC’s last round of open market operations on 24 August. The move by PBOC coincided with the maturation of 2 billion yuan in reverse repos, for no net change in liquidity.
On Tuesday the overnight Shanghai Inter Bank Offered (SHIBOR) fell 11.1 basis points to 1.124%, while the 7-day Shibor rose 1 basis point to 1.649%.
The weighted average interest rate for the DR007 reverse repo was at 1.6584%, still beneath the Chinese central bank’s policy rate.