China’s central bank conducts first CBS | 2019-02-21 | daily-sun.com

China’s central bank conducts first CBS

    21 February, 2019 12:00 AM printer

BEIJING: The People's Bank of China (PBOC) on Wednesday conducted the first central bank bills swap (CBS) operation to support the issuance of perpetual bonds by commercial banks.

The CBS, valued at 1.5 billion yuan (around 222 million U.S. dollars), are open to primary dealers at a fixed rate at 0.25 percent, according to a PBOC statement. The swap will be due on Feb. 20, 2020, reports Xinhua.

The CBS scheme allows dealers to swap the perpetual bonds they hold for central bank bills, which will effectively boost market demand of perpetual bonds.


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