PBOC Steps up Repo Operations at End of Third Quarter

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The Chinese central bank stepped up the volume of its reverse repo operations towards the end of the third quarter in a bid to maintain steady liquidity.

During the period from 26 – 30 September, the People’s Bank of China engaged in 521 billion yuan in 7-day reverse repo operations and 357 billion yuan in 14-day reverse repo operations, for the purpose of “maintaining the stability of end-of-quarter liquidity.”

A research report from Industrial Bank Co., Ltd. points out that from 27 to 30 September, PBOC engaged in over 100 billion yuan in 7-day reverse repo operations each day, which “sends positive signals for maintaining the stability of funds at the end of the quarter.”

During the week from 19 – 23 September, PBOC also undertook 10 billion yuan in 7-day reverse repo operations and 90 billion yuan in 14-day reverse repo operations.