BEIJING, Aug 29(ABC): China’s central bank Monday conducted 2 billion yuan (about 291.1 million U.S. dollars) of reverse repos to maintain liquidity in the banking system.
The interest rate for the seven-day reverse repos was set at 2 percent, according to the People’s Bank of China.
The move aims to keep stable liquidity in the banking system, the central bank said.
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.