China’s Central Bank on Monday conducted two billion yuan (about 289.9 million dollars) of reverse repos to maintain liquidity in the banking system.
The interest rate for the seven-day reverse repos was set at two per cent, according to the People’s Bank of China.
The move according to the Central Bank, was aimed at keeping stable liquidity in the banking system.
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.
