- China's central bank will offer lenders a record amount of overnight funds each day over the upcoming holidays, when cash demand is expected to rise.
- The PBOC will conduct overnight reverse repurchase agreements from Sept. 28 to Oct. 8, with daily volumes capped at 1 trillion yuan ($149 billion).
- The operations aim to match short-term liquidity needs in the banking system during the holiday period.
Quotes
“China’s central bank will offer lenders a record amount of overnight funds each day over a period covering the upcoming holidays, when demand for cash is expected to rise.”
“The People’s Bank of China will conduct overnight reverse repurchase agreements from Sept. 28 to Oct. 8, with daily volumes capped at 1 trillion yuan ($149 billion) to match short-term liquidity needs in the banking system, it said in a statement late Wednesday.”