Illya Gerasymchuk
Entrepreneur / Engineer
🇨🇳 PBoC provides commercial & policy banks with liquidity via reverse repo open market operations this MASSIVE liquidity eventually flows out of china into the global economy so it has a very direct effect on asset prices wherever your are 😄
🇨🇳 china injects liquidity mainly via reverse repurchase agreements 🏦 chinese central bank buys government bonds from commercial banks, selling them back later. this new cash is re-invested yielding a spread 💹 essentially, they allow banks to earn a yield on their bonds
