People's Bank of China Supplies 349 Billion Yuan in One-Day Reverse Repo
On the 14th, the People's Bank of China supplied 349 billion yuan in one-day reverse repurchase agreements. On the same day, the operation amount for the seven-day reverse repos was reported as zero, indicating that this measure is interpreted more as a short-term liquidity adjustment rather than a change in the benchmark interest rate. The People's Bank of China stated that it recorded an operation amount of zero for the seven-day reverse repos while conducting 349 billion yuan in one-day reverse repos in the open market operations. CryptoBriefing reported that the central bank supplied 565.5 billion yuan, but the official announcement confirmed the amount as 349 billion yuan. The key aspect of this measure is the confirmation of the figures and the nature of the policy rather than the scale of supply. Reverse repurchase agreements are open market operations through which the central bank supplies short-term funds to financial institutions, specifically targeting ultra-short-term funding needs. The People's Bank of China announced at the Lujiazui Forum in June that it would add one-day reverse repo operations to precisely adjust short-term interest rates. Reuters reported plans to supply 600 billion yuan daily from July 29 to 31, and 300 billion yuan on August 3. It is emphasized that this measure is difficult to interpret as a signal for a change in policy interest rates. Domestic liquidity operations in China can also serve as reference variables for Korean investors regarding exchange rates and the flow of global risk assets.
-- Price
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