China to launch new gauge to improve interbank interest rate system

Chinese 100 yuan banknotes are seen in this picture illustration taken in Beijing July 11, 2013. REUTERS/Jason Lee/File Photo

BEIJING (Reuters) - China will launch a national transaction gauge to improve the interbank benchmark interest rate system and improve the efficiency of monetary policies, China’s foreign exchange trade platform said in a statement on its website.

The gauge will be officially launched on May 31 and will include three fixing interbank repo rates for one-day, seven-day and 14-day contracts.

The information will be compiled on the basis of repurchase agreements conducted by deposit-type institutions including policy banks, commercial banks, rural credit cooperations, among others, using bonds including treasuries, central government bills and bonds issued by policy banks as collateral.

Reporting by Samuel Shen, Winni Zhou and Sue-Lin Wong; editing by David Clarke