Briefly

PBOC adds liquidity via reverse repos

China's central bank conducted 2 billion yuan ($281 million) of seven-day reverse repos at an interest rate of 1.8 percent on Thursday. The move aims to keep liquidity reasonable and ample in the banking system, the People's Bank of China said. A reverse repo is a process in which the PBOC purchases securities from commercial lenders through bidding, with an agreement to sell them back in the future.

Renminbi weakens against greenback

The central parity rate of the Chinese renminbi, also known as the yuan, weakened 11 pips to 7.1108 against the US dollar on Thursday, said 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