Briefly

PBOC adds liquidity via reverse repos

China's central bank conducted 83 billion yuan ($11.69 billion) of seven-day reverse repos at an interest rate of 1.8 percent on Friday. It also conducted 14 billion yuan of 14-day reverse repos at an interest rate of 1.95 percent. The move aims to keep liquidity stable ahead of Spring Festival that falls on Feb 10 this year, the People's Bank of China said in a statement. 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.

Renminbi strengthens against greenback

The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 43 pips to 7.1006 against the US dollar on Friday, 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. The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

Xinhua - China Daily