Reverse Repurchase Agreements China

Shanghai | China`s central bank on Monday cut the rate on reverse pension operations by 20 basis points, the largest in nearly five years, as authorities stepped up efforts to reduce pressure on an economy devastated by the coronavirus pandemic. Earlier in the day, PBoC injected 50 billion yuan ($11.4 billion) into money markets through seven days of reverse-rest, breaking a 29-day trading break without further financial injections. In this summary, the Central Bank of China injects liquidity into the market for four consecutive days through reverse rest, industrial earnings growth recovers in April from the most recent lows, and officials will work on guidelines for panda bonds issued by SSA issuers. A reverse repo is a process in which the central bank buys securities from commercial banks by auction, with the agreement to resell them in the future. The People`s Bank of China (PBoC) announced on its website that it would lower the reverse repo rate from 2.40% to 2.20% over seven days, but gave no reason to do so. Reverse retirement operations are short-term credit arrangements in which central banks buy securities and then resell them at a slightly higher price. They are used to inject short-term liquidity into a national economy. This was the first 14-day repo injection since February 10. ($1 = 7.0840 Chinese Renminbi Yuan) (Reports by Andrew Galbraith and Se Young Lee; Writing by Christian Schmollinger) The PBoC injected more liquidity during the week.

He injected Rmb120bn on Wednesday, Rmb240bn on Thursday and Rmb300bn on Friday. All reverse retirement transactions have a duration of seven days and an interest rate of 2.2%. The bank also injected 50 billion yuan per 7 days of reverse-rest at 2.2 percent, unchanged from the previous injection. SHANGHAI, May 29 (Reuters) – China`s central bank kept the interest rate on seven-day reverse retirement operations unchanged on Friday at 2.20 percent. The People`s Bank of China (PBoC) injected liquidity four days in a row this week through reverse retirement operations. Reverse rest is an instrument that allows the central bank to add or reduce the money supply in the banking system. With 80 billion yuan in repayment due on Thursday, the PBOC injected 40 billion yuan net (5.65 billion $US) that day, according to Reuters calculations. The People`s Bank of China (PBOC) said in a statement that it injected 70 billion yuan (9.88 billion $US) into the country`s money market through 14-day reverse retirement operations at a rate of 2.35 percent, up from 2.55 percent previously.

SHANGHAI/BEIJING, June 18 (Reuters) – China`s central bank on Thursday cut the interest rate on 14-day reverse retreat operations as it again uses the liquidity instrument for the first time since February. . . .