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China's central bank continues to skip reverse repos

Xinhua News,BEIJING
2020-03-11 11:18

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The People's Bank of China, the country's central bank, skipped reverse repos for the 17th straight day on Wednesday, citing reasonably sufficient liquidity in the banking system.

No reverse repos matured Wednesday.

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.

Facing potential economic shocks from the novel coronavirus outbreak, China's financial authorities pledged to pay more attention to policy flexibility to keep reasonably sufficient liquidity and release the potential of the loan prime rate reform.

The central bank has earlier stated that China will implement the "dynamic adjustment" of targeted reserve requirement ratio cut policies in the near future for better use of inclusive financing to shore up the virus-hit economy.
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