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China's central bank adds liquidity via reverse repos

Xinhua | Updated: 2022-08-18 13:54
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The headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing. [Photo/IC]

BEIJING -- China's central bank on Thursday conducted 2 billion yuan (about $295 million) of reverse repos to maintain liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2 percent, according to the People's Bank of China.

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