China’s central bank on Tuesday conducted 2 billion yuan (about 289 million dollars) of reverse repos to maintain liquidity in the banking system.
According to the People’s Bank of China, the interest rate for the seven-day reverse repos is set at two per cent.
The central bank said that the move aimed to keep stable liquidity in the banking system.
A reverse repo is a process in which the central bank purchased securities from commercial banks through bidding, with an agreement to sell them back in the future.