Related News
PBOC transacts 28-day repos for 1st time in decade
Source: Bloomberg News |
September 14, 2012, Friday
|
Print Edition
Print Edition
CHINA'S central bank yesterday issued 28-day reverse-repurchase contracts for the first time in a decade, extending the duration of its fund injections into the banking system and damping speculation reserve requirements will be cut.
The People's Bank of China offered 20 billion yuan (US$3.2 billion) of 28-day reverse repos, according to a statement on its website. That was the first time the contract was used since December 2002. The central bank also conducted 35 billion yuan worth of seven-day reverse repo transactions.
"The extension of the tenor of reverse repos suggests that policy makers are continuing to favor temporary measures over cutting the required reserve ratio, which would be a permanent solution," Dariusz Kowalczyk, a senior strategist at Credit Agricole CIB in Hong Kong, wrote in a report yesterday. "It is possible that the reserve requirement ratio will not be cut any time soon. This means that interbank liquidity will likely remain relatively tight."
The People's Bank of China offered 20 billion yuan (US$3.2 billion) of 28-day reverse repos, according to a statement on its website. That was the first time the contract was used since December 2002. The central bank also conducted 35 billion yuan worth of seven-day reverse repo transactions.
"The extension of the tenor of reverse repos suggests that policy makers are continuing to favor temporary measures over cutting the required reserve ratio, which would be a permanent solution," Dariusz Kowalczyk, a senior strategist at Credit Agricole CIB in Hong Kong, wrote in a report yesterday. "It is possible that the reserve requirement ratio will not be cut any time soon. This means that interbank liquidity will likely remain relatively tight."
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
