China's central bank conducts reverse repos to boost liquidity
Pedestrians wait to cross a road at a junction near a giant display of stock indexes in Shanghai, China August 3, 2022. REUTERS/Aly Song
China's central bank on Wednesday conducted 202 billion yuan (about 28.99 billion US dollars) of reverse repos to maintain liquidity in the banking system.
The amount included 189 billion yuan of seven-day reverse repos at an interest rate of 2 percent, and 13 billion yuan of 14-day reverse repos at an interest rate of 2.15 percent, according to the People's Bank of China.
The move is aimed at keeping liquidity stable in the banking system at the end of the year, the central bank said.
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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.
