Briefly

PBOC conducts reverse repos

China's central bank on Thursday conducted 10 billion yuan ($1.6 billion) of reverse repos to maintain liquidity in the banking system. The interest rate for the seven-day reverse repos was set at 2.1 percent, according to the People's Bank of China. With 200 billion yuan of reverse repos maturing on Thursday, this led to a net liquidity withdrawal of 190 billion yuan from the market. A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

Yuan strengthens against dollar

The central parity rate of the yuan strengthened 335 pips to 6.3016 against the US dollar on Thursday, according to the China Foreign Exchange Trade System. In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

Xinhua