Reverse repos worth 770bn yuan to mature in China | 2019-01-21

Reverse repos worth 770bn yuan to mature in China

21 January, 2019 12:00 AM printer

BEIJING: Reverse repos worth 770 billion yuan (about 113.8 billion U.S. dollars) will mature in China in the coming week, the largest weekly amount in a year.

On Wednesday, 350 billion yuan of reverse repos will mature and another 250 billion yuan will mature Thursday, according to information service provider Wind Info.

Reverse repos enable the central bank to purchase securities from commercial banks, with an agreement to sell them back in the future.

During the past week, the People's Bank of China, the country's central bank, had a combined net injection of 1.16 trillion yuan via open market operations, the largest weekly amount in two years, reports Xinhua.

China will cut the reserve requirement ratio for RMB deposits by another 0.5 percentage points on Jan. 25, following a reduction of 0.5 percentage points on Jan. 15, which is expected to offset liquidity fluctuations before the Spring Festival, according to a previous announcement by the central bank.

 


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