China’s central bank conducts $2.76 billion via reverse repos

Beijing: China's central bank conducted 19.5 billion yuan (about US$2.76 billion) of seven-day reverse repos at an interest rate of 1.5 percent on Monday. Xinhua news agency quoted the People's Bank of China as saying that the move aims to keep liquidity in the banking system reasonable and ample, 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. Source: Emirates News Agency