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The People’s Bank of China (PBOC) issued 324 billion yuan ($44.87 billion) through 7-day repo, reverse repurchase operations, at an interest rate of 1.8 per cent in order to maintain liquidity in the banking system, Xinhua reported on Wednesday.
Repo refers to a transaction in which a dealer acts as a seller—borrowing money and providing securities as collateral. In reverse repo, a dealer acts as a buyer—borrowing securities and lending money.
