Markets > Bonds

China's central bank skips reverse repos for 2nd day

BEIJING
2019-09-30 09:47

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BEIJING, Sept. 30 (Xinhua) -- China's central bank skipped reverse repos for a second day in a row on Monday, citing abundant liquidity on the market.

The overall liquidity in the banking system is on a relatively high level due to increased fiscal expenditures near the end of the quarter, the People's Bank of China said on its website.

With 20 billion yuan (about 2.8 billion U.S. dollars) of reverse repos maturing Monday, the central bank effectively withdrew the same amount of money from the market.

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.

China vowed to keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.
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