Chinese Central Bank Steps up Next Injections via Reverse Repo Operations


The People’s Bank of China (PBOC) has made net injections into the Chinese banking system via reverse repo operations in a bid to keep liquidity on an even keel as the end of the year approaches.

On 21 December PBOC announced that that it was undertaking 19 billion yuan in 7-day reverse repo operations and 141 billion yuan in 14-day reverse repo operations, at rates of 2.0% and 2.15% respectively.

Given that 2 billion yuan in reverse repos were scheduled to mature, the move resulted into a net injection of 158 billion yuan.

PBOC also made a net injection of 144 billion yuan via reverse repo operations the day previously on 20 December.