PBOC Injects USD17 Billion Into Financial System by OMOs
Dou Shicong
DATE:  Jun 22 2020
/ SOURCE:  Yicai
PBOC Injects USD17 Billion Into Financial System by OMOs PBOC Injects USD17 Billion Into Financial System by OMOs

(Yicai Global) June 22 -- The People's Bank of China net injected CNY120 billion (USD17 billion) into the domestic financial system via open market operations today.

The central bank conducted a seven-day reverse repurchase of CNY40 billion and a 14-day one of CNY80 billion this morning. The interest rates were 2.20 percent and 2.35 percent, respectively. No pervious reverse repo matured today.

The PBOC net withdrew a total of CNY160 billion in cash from the banking system last week as former open market operations matured.

Reverse repo agreements are primary tools financial institutions and banks use to provide temporary lending facilities to fund ongoing operations, where a buyer undertakes to temporarily buy a basket of securities for a fixed period and to sell them back at a slightly higher price.

Editor: Ben Armour

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Keywords:   PBOC,Reverse Repo,OMO