FILE PHOTO: The headquarters of the People's Bank of China (PBOC), the central bank, is photographed in Beijing, China, on September 28, 2018. REUTERS / Jason Lee
SHANGHAI (Reuters) – China's central bank announced on Monday that the second phase of a reduction in the reserve requirement ratio (RRR) was releasing about 100 billion yuan ($ 14.44 billion) in long-term funds.
In the context of open market operations, the People's Bank of China (PBOC) also injected 150 billion yuan by repurchase agreement of 14 days in order to "maintain stable liquidity level to end June, "the bank said in a statement posted on its website. [CN/MMT]
The PBOC announced in May that it would apply a reduction in RRRs for some small and medium-sized banks in three phases, as part of broader efforts to help businesses weather the slowdown in the world's second-largest economy.
The third phase of the RRR reduction is scheduled to come into effect on July 15th.
Report by Winni Zhou and David Stanway; edited by Darren Schuettler