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China's central bank skips reverse repos

Xinhua News,BEIJING
2020-07-06 10:54

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BEIJING, July 6 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, skipped open market operations via reverse repos on Monday.

Liquidity in the banking system stays at a relatively high level that can absorb the impacts of maturing reverse repo contracts and financial institutions' deposit reserves, the PBOC said in an online statement.

A total of 180 billion yuan (about 25.47 billion U.S. dollars) of reverse repos matured Monday.

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 will pursue a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.
 
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