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    China's central bank skips reverse repos

    Xinhua | Updated: 2020-04-03 13:46
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    A fluttering Chinese national flag casts its shadow on the headquarters of China's central bank, People's Bank of China (PBOC), in Beijing. [Photo/Agencies]

    BEIJING - The People's Bank of China (PBOC), the country's central bank, skipped reverse repos Friday, citing reasonably sufficient liquidity in the banking system.

    No reverse repos matured Friday.

    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 PBOC on Monday injected 50 billion yuan ($7 billion) into the market through the seven-day reverse repos while cutting the interest rate by 20 basis points to 2.2 percent to lower lending costs and offset the economic shock of the novel coronavirus outbreak.

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