China's central bank skips reverse repos Tuesday

BEIJING - The People's Bank of China (PBOC), the country's central bank, skipped open market operations via reverse repos Tuesday.

The banking system reports reasonable and sufficient liquidity at present, the PBOC said in an online statement.

No reverse repos matured Tuesday.

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

The central bank on April 3 announced a decision to cut the reserve requirement ratio for small and medium-sized banks by 100 basis points to bolster the real economy.

The reduction in the cash that lenders must hold as reserves is expected to unleash around 400 billion yuan ($56.8 billion) of long-term capital into the market.