People’s Bank of China Initiates 7-Day Reverse Repurchase Operations Worth 49 Billion Yuan

People’s Bank of China Initiates 7-Day Reverse Repurchase Operations Worth 49 Billion Yuan

In a recent move, the People’s Bank of China (PBOC) has declared the initiation of reverse repurchase operations totaling 49 billion yuan (approximately 6.9 billion US dollars). The operations are set to last for seven days, with an interest rate fixed at 1.8%.

Zhu Maohua, a macroeconomic expert associated with the Financial Markets Department at Everbright Bank, shared insights with People’s Daily Online, highlighting that the central bank has adjusted its open market operations strategy post the Chinese New Year. The shift involves transitioning from a net injection of liquidity to a withdrawal approach. This adjustment signifies the PBOC’s commitment to balance excess liquidity in the short-term market, aligning with the methods it has consistently employed in recent years.

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