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China's central bank to conduct temporary repos, reverse repos from July 8

BEIJING
2024-07-08 10:39

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BEIJING, July 8 (Xinhua) -- China's central bank said it will carry out temporary repos or reverse repos based on market conditions starting from Monday.

The move aims to keep liquidity reasonable and ample in the banking system and improve the accuracy and effectiveness of open market operations, the central bank said in a statement.

These overnight temporary repos and reverse repos will be conducted through bidding, with their interest rates set based on the seven-day reverse repos.

A repo, or repurchase agreement, is a process in which the central bank sells bonds to financial institutions and promises to buy them back in the future.
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