China's central bank continues to skip reverse repos

BEIJING - The People's Bank of China (PBOC), the country's central bank, continued to skip reverse repos on Tuesday.

The decision was aimed at maintaining reasonably sufficient liquidity in the banking system, as increased fiscal expenditures near the month end could offset the effect of such factors as maturing reverse repos, the PBOC said in a statement.

The central bank skipped reverse repos on Monday, also citing abundant liquidity.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China vowed to keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.