China to auction 100 billion yuan of treasury cash deposits on Friday
The People's Bank of China and the Ministry of Finance will hold a 100 billion yuan treasury cash deposit auction on Friday, with a one-month term, to improve cash use efficiency and coordinate fiscal and monetary policy.
The People's Bank of China (PBOC) announced that it will conduct a 100 billion yuan central treasury cash management commercial bank fixed-term deposit auction together with the Ministry of Finance on Friday. The deposit will have a term of one month, with the aim of improving the efficiency of central treasury cash use and strengthening the coordination of fiscal and monetary policy.
This year, the Ministry of Finance and the PBOC have mainly conducted central treasury cash fixed-term deposit auctions with terms of one month and three months. In the most recent auction on Thursday last week, the winning interest rates for one-month and two-month terms were 1.42 per cent and 1.47 per cent, respectively.
In November last year, the PBOC introduced a 21-day term for the first time. At the end of last year, it also added a 14-day term. Both of these used a multiple-price bidding method, and the interest rates were not disclosed.