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China's central bank skips reverse repos Tuesday

Xinhua News,BEIJING
2020-05-19 10:16

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BEIJING, May 19 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, skipped open market operations via reverse repos Tuesday.

The banking system reports reasonable and sufficient liquidity at present, the PBOC said in an online statement.

As no reverse repos matured, there is no net liquidity withdrawal from or net liquidity injection into the banking system on Tuesday.

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.

Since the novel coronavirus outbreak, China has increased policy support on the monetary and fiscal fronts to help businesses, especially small ones, to tide over difficulties.

The PBOC will strengthen counter-cyclical adjustments and adopt more flexible monetary policy to fend off financial risks and support the real economy, central bank governor Yi Gang wrote in an article released on the PBOC website on Saturday.
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