The central bank conducted a reverse repurchase of 180 billion on the 27th and achieved a net return of 100 billion on the same day

　　China-Singapore Jingwei Client, January 27, according to the official website of the Central Bank, the People's Bank of China launched a 180 billion yuan reverse repurchase operation on January 27, 2021 through an interest rate bidding method.

On the 27th, 280 billion yuan of reverse repurchases expired, and a net return of 100 billion yuan was achieved that day.

　　Source: Central Bank's official website

　　The central bank announced that the reverse repurchase period is 7 days, the bid amount won is 180 billion, and the bid interest rate of 2.2% is the same as the previous time.

In response to the reason for reverse repurchase, the central bank explained that fiscal expenditures have increased substantially towards the end of the month, maintaining reasonable and sufficient liquidity in the banking system.

　　Source: Wind

　　Wind data shows that since this week, from January 25th to 27th, the central bank conducted reverse repurchases of 2 billion yuan, 2 billion yuan, and 180 billion yuan respectively.

The maturity of reverse repurchase is RMB 2 billion, RMB 80 billion, and RMB 280 billion.

　　On January 26, the Governor of the Central Bank Yi Gang attended the video conference of the World Economic Forum Davos Agenda Meeting and participated in the "Strengthening the Financial and Monetary System" Leaders' Forum.

This session discussed the financial risks that the new crown pneumonia response measures may bring and how to improve the risk resistance of financial institutions.

　　According to the Shanghai Securities News, the Governor of the Central Bank, Yi Gang, attended the video conference of the World Economic Forum’s Davos Agenda Meeting on the 26th and said that monetary policy will continue to be balanced in supporting economic recovery and avoiding risks. We ensure that the policies adopted are consistent and stable. And consistency without giving up support policies prematurely.

　　Chuancai Securities Research Report believes that the release of reverse repurchase can play a role in lowering the interest rate of the money market. With the release of the central bank’s liquidity, the impact will gradually appear, the tightness of bank funds will be eased, and the funding interest rate will gradually Back to normal.

It is expected that during the Spring Festival, monetary policy will be implemented "no sharp turn", and liquidity is expected to maintain reasonable abundance.

(China-Singapore Jingwei APP)