PBOC makes more reverse repurchase operations
Updated: 2012-10-16 17:18
By Wang Xiaotian (chinadaily.com.cn)
The Chinese central bank continued to make reverse repurchase operations on Tuesday, according to a statement published today on the website of the People's Bank of China.
The bank said it has made 76 billion yuan ($12.06 billion) worth of the transactions on the day, including seven-day reverse repos of 18 billion yuan at an interest rate of 3.35 percent, and 28-day reverse repos worth 58 billion yuan at a rate of 3.6 percent.
The move came a day after the government released September's Consumer Price Index figures, which dropped to 1.9 percent from August's 2 percent.
Last Thursday, the PBOC also injected 59 billion yuan into the market through reverse repos.
The central bank has been increasing its use of short-term money market tools, such as reverse repurchase transactions, to ease liquidity tension, after it last cut the reserve requirement ratios in May by 50 basis points to 20 percent for major banks.
From Sept 24 to 27, it injected 365 billion yuan, a record-high weekly injection through open market operations.
On Sept 25, the central bank pumped a record 290 billion yuan into the market through reverse repos.