Markets > Bonds

China's central bank drains liquidity from market

BEIJING
2022-01-04 10:23

Already collect



BEIJING, Jan. 4 (Xinhua) -- China's central bank drained liquidity from the banking system on Tuesday with more reverse repos maturing than conducted.

The People's Bank of China injected 10 billion yuan (about 1.57 billion U.S. dollars) into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on its website.

With 270 billion yuan of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 260 billion yuan from the market.

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.


 
Add comments

Latest comments

Latest News
News Most Viewed