China’s central bank conducts reverse repos Monday

The People’s Bank of China. [Photo/Agencies]

BEIJING – China’s central bank conducted 52.1 billion yuan ($7.3 billion) of seven-day reverse repos at an interest rate of 1.7 percent Monday.

The move aims to keep liquidity reasonable and ample 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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