The People's Bank of China Lowers Reverse Repo Rate by 10bp... Liquidity Supply
[Asia Economy Beijing=Special Correspondent Park Sun-mi] The People's Bank of China lowered the reverse repurchase (reverse repo) rate by 10 basis points (1bp=0.01 percentage points) on the 3rd.
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Reverse repo is one of the open market operations in which the monetary authority purchases government bonds or government-guaranteed bonds issued to supply liquidity. The People's Bank of China announced the day before that it would inject 1.2 trillion yuan (approximately 205 trillion won) of liquidity into the market through open market operations on the 3rd. The People's Bank of China explained that the liquidity injection policy is "a measure to provide reasonable and sufficient liquidity and to ensure the stable operation of the financial market during the special period requiring prevention and control of the novel coronavirus."
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