China’s central bank adds liquidity via reverse repos

Author: xinhua

China’s central bank continued to inject funds into the financial system through open market operations Friday. The People’s Bank of China said it has conducted 2 billion yuan (about 284.27 million U.S. dollars) of seven-day reverse repos at an interest rate of 2 percent. The move is aimed at keeping liquidity reasonable and ample in the banking system, according to the central bank. 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.

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