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China's central bank adds liquidity via reverse repos

Xinhua | Updated: 2022-06-02 14:14
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The People's Bank of China. [Photo/Sipa]

BEIJING -- China's central bank on Thursday conducted 10 billion yuan ($1.5 billion) of reverse repos to maintain liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.1 percent, according to the People's Bank of China.

The move aims to keep liquidity in the banking system reasonably stable, 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.

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