2016/9/20 Examples of PBoc's Reverse Repo Examples of PBoc's Reverse Repo The reverse repo was priced to yield 2.25 per cent compared with Monday s average of 2. 6935% and las Friday' s 2.9292%. Traders believe the injection is partly to give stock vestors more confidence and to reaffirm the pboc's easing stance remains unchanged June 6, 2016)Chinese central bank pumps 40b yua into market the cost at which Chinese banks lend to one another. The People s Bank of China(PBoC) pumped the huge sum dropped by 0.1 basis point to 1.998 per cent after the in a seven-day reverse repurchase agreements(repo),a process in which central banks purchase securities from banks with an agreement to resell them in the future. Examples of Pboc s reverse repo Examples of PBoc's Reverse Repo Sept 12, 2016: China PBOC Injects Combined CNY160 BIn; 28D Reverse Repo Back PBOC and will further push up short term money rates. The People' s Bank of China injected a total of CNY160 billion pt. 18, 2016: China PBoC Injects CNY250 BIn including CNY60 billion via the 28-day reverse repo. Continues 28-Day Reverse Repo holiday month, which tends to fall in January or Februa traders said, including CNY70 billion via a 28-day reverse The PBoC last used the 28-day reverse repo to inject The PBoC also injected a hefty cny180 billion through a during the Chinese New Ye seven-day reverse repo on monday. It skipped the 14-day Now the focus is on whether the 28-day reve maturity in Monday 's operation. long National Day holiday sta or whether it will become a permanent omo tool like the A total of CNY80 billion in outstanding PBOC reverse repos matures Monday, resulting in a net injection of CNY170 Example of PBoC Cutting Examples of PBoC Cutting RRR and Interest rate RRR and Interest Rate June 28, 2015)China cuts reserve ratio, interest The central bank cut the rrr for commercial banks serving rates to bolster growth al areas, agriculture and small businesses by 50 basis Chinas central bank cut both the requirement reserve ratio(RRR), the amount of reserves banks required to hold, The RRr for finance anies, or non-bank financial stitutions, will be lowered by 300 bps, the PBoc real economy and promote restructuring, said the People's Bank of China(PBoC)in an agricultural development as well as small announcement usinesses, the PBOC said 102016/9/20 10 Examples of PBoC’s Reverse Repo – The seven day repo opened at 2.58% on Tuesday, compared with Monday's average of 2.6935% and last Friday's 2.9292%. – Traders believe the injection is partly to give stock investors more confidence and to reaffirm the PBoC's easing stance remains unchanged. • (June 6,2016) Chinese central bank pumps 40b yuan into market – The People’s Bank of China (PBOC) pumped the huge sum in a seven‐day reverse repurchase agreements (repo), a process in which central banks purchase securities from banks with an agreement to resell them in the future. 1‐55 Examples of PBoC’s Reverse Repo – The reverse repo was priced to yield 2.25 per cent, unchanged from Friday’s injection of 40 billion yuan, according to a PBOC statement. – The move followed a net injection of 70 billion yuan and 95 billion yuan into the financial system on last week. – In Monday’s interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, dropped by 0.1 basis point to 1.998 per cent after the injection. 1‐56 Examples of PBoC’s Reverse Repo • Sept. 12, 2016: China PBOC Injects Combined CNY160 Bln; 28D Reverse Repo Back – The People's Bank of China injected a total of CNY160 billion via reverse repos in its open market operations on Tuesday, including CNY60 billion via the 28‐day reverse repo. – This is the first time in four years that the PBOC has used the 28‐day reverse repo outside of the Chinese New Year holiday month, which tends to fall in January or February. – The PBOC last used the 28‐day reverse repo to inject liquidity in early February to meet the demand for cash during the Chinese New Year holiday. – Now the focus is on whether the 28‐day reverse repo is just for the week‐long National Day holiday starting October 1 or whether it will become a permanent OMO tool like the 14‐day maturity. 1‐57 Examples of PBoC’s Reverse Repo – The latter would suggest more longer‐term funds from the PBOC and will further push up short term money rates. • Sept. 18, 2016: China PBOC Injects CNY250 Bln, Continues 28‐Day Reverse Repo – The People's Bank of China injected a total of CNY250 billion via reverse repos in its open market operations Monday, traders said, including CNY70 billion via a 28‐day reverse repo. – The PBOC also injected a hefty CNY180 billion through a seven‐day reverse repo on Monday. It skipped the 14‐day maturity in Monday's operation. – A total of CNY80 billion in outstanding PBOC reverse repos matures Monday, resulting in a net injection of CNY170 billion for the day. 1‐58 Example of PBoC’ Cutting RRR and Interest Rate • (June 28, 2015) China cuts reserve ratio, interest rates to bolster growth – China's central bank cut both the requirement reserve ratio (RRR), the amount of reserves banks required to hold, and benchmark interest rates on Saturday. – The credit‐easing move, to be effective on Sunday, aims to "support the real economy and promote restructuring," said the People's Bank of China (PBOC) in an announcement. 1‐59 Examples of PBoC’ Cutting RRR and Interest Rate – The central bank cut the RRR for commercial banks serving rural areas, agriculture and small businesses by 50 basis points (bps). – The RRR for finance companies, or non‐bank financial institutions, will be lowered by 300 bps, the PBOC announced. – The purpose of the RRR reduction is to boost financial institutes' abilities to support farmers, rural and agricultural development as well as small and micro businesses, the PBOC said. 1‐60