PBOC to conduct temporary repo, reverse repo operations

By Dow Jones Newswires

China's central bank has said that it will conduct temporary open market operations in the afternoon, on top of its traditional morning operations, in a bid to improve their effectiveness.

The People's Bank of China said Monday that it could start conducting repurchase and reverse repurchase agreements from 4 p.m. to 4:20 p.m. each working day. It didn't specify how long this will continue.

The central bank normally only conducts open market operations in the morning.

The term of the temporary repos and reverse repos will be overnight, said the central bank. The repo interest rate will be 20 basis points below the seven-day reverse repo rate, while the reverse repo rate will be 50 basis points above the seven-day reverse repo rates.

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(END) Dow Jones Newswires

07-07-24 2111ET

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