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The People’s Bank of China (PBC) announced on Monday that it had conducted 50 billion yuan (about US$7.04 billion) of seven-day reverse repos at an interest rate of 1.8 per cent.
The move aims “to maintain stable liquidity at quarter end” in the banking system, the PBC explained in a statement.
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, according to English.gov.cn – the official English-language communication platform of the State Council of the People’s Republic of China.
