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China's central bank continues to skip reverse repos

Source: Xinhua| 2018-12-12 13:41:54|Editor: Yang Yi
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BEIJING, Dec. 12 (Xinhua) -- China's central bank skipped yet another reverse repo on Wednesday, marking the 34th straight day of zero cash injections into the monetary market.

The People's Bank of China said in an online statement that the liquidity on the interbank market stood at a "reasonable and sufficient" level.

No reverse repo is due on Wednesday.

A reverse repo is a liquidity-injecting process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

Wednesday's data shows the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, dropped 3.9 basis points to 2.424 percent.

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