China’s central bank continues to skip open market operations | 2019-03-26 | daily-sun.com

China’s central bank continues to skip open market operations

26 March, 2019 12:00 AM printer

BEIJING: China's central bank continued to skip open market operations Monday, citing abundant liquidity in the banking system.

As 60 billion yuan (about 8.94 billion U.S. dollars) of reverse repos matured on Monday, the People's Bank of China effectively drained the same amount of liquidity from the market, reports Xinhua.

The central bank has skipped reverse repos for four consecutive working days.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.


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