BEIJING – China’s central bank on Wednesday conducted 180 billion yuan ($27.8 billion) of reverse repos to maintain reasonably ample liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.2 percent, according to a statement on the website of the People’s Bank of China.

With 280 billion yuan of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 100 billion yuan from the market.

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

China’s central bank has pledged to make its prudent monetary policy more targeted and flexible to adapt better to the needs of high-quality development and put more focus on the efficiency of financial services to support the real economy.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

American Airlines will book flights to full capacity

DALLAS — American Airlines will start booking flights to full capacity next week, ending any effort to promote social distancing on its planes while the United States sets records for new reported cases of the coronavirus. American’s move matches the…

Volkswagen says it will have full control of JAC-VW Chinese venture

BEIJING/SHANGHAI (Reuters) – German automaker Volkswagen (VOWG_p.DE) will have full management control of its JAC-VW joint venture, the company’s China CEO said on Friday. Stephan Wollenstein told a media briefing that production of electric vehicles based on the MEB platform…

U.S. economic recovery hampered by wobbly performance in powerhouse states

(Reuters) – Of the many tragedies in the U.S. coronavirus epidemic, among the largest was that the nation’s four economic powerhouses – California, Florida, New York and Texas – bolted to opposite corners early in an often politicized response to…

Toyota sees July vehicle output down 10% on initial plan

TOKYO (Reuters) – Toyota Motor Corp (7203.T) said on Monday it would make 10% fewer vehicles next month than originally planned, as it gradually resumes output following factory closures earlier this year due to the coronavirus pandemic. The Japanese automaker…