China central bank resumes 14-day reverse repos to smoothen year-end cash demand
2023.12.17 20:53
© Reuters. FILE PHOTO: The headquarters of the People’s Bank of China, the central bank, is pictured in Beijing, China, as the country is hit by an outbreak of the new coronavirus, February 3, 2020. REUTERS/Jason Lee/File Photo
SHANGHAI (Reuters) – China’s central bank resumed injecting short-term cash through 14-day reverse repos for the first time in three months on Monday, as it steps up efforts to smoothen increasing year-end liquidity demand.
The People’s Bank of China (PBOC) injected a total of 244 billion yuan ($34.28 billion) through reverse repos in open market operations, including 184 billion yuan through the seven-day tenor and 60 billion yuan via the 14-day tenor.
The resumption of lending via 14-day reverse repos to financial institutions was the first such injection since late September.
The central bank said Monday’s operation was meant to “keep year-end liquidity conditions reasonably ample,” according to an online statement.
($1 = 7.1179 )
