China's central bank skips reverse repos Monday
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E-mail Xinhua, April 20, 2020
The People's Bank of China (PBOC), the country's central bank, skipped open market operations via reverse repos Monday.
The banking system reports reasonable and sufficient liquidity at present, the PBOC said in an online statement.
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.
The central bank last Wednesday lowered the rate of 100 billion yuan worth of one-year MLF to financial institutions by 20 basis points to 2.95 percent to ease COVID-19 strains on the economy.
Meanwhile, the implementation of the 50 basis-point reduction on reserve requirement ratio for small and medium-sized banks starting April 15 is expected to unleash around 200 billion yuan (28.3 billion U.S. dollars) of long-term capital into the market.
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