Beijing, January 9 (BNA): China’s central bank on Monday introduced 2 billion yuan (about $293 million) of reverse repo operations to maintain liquidity in the banking system.
Xinhua reported that the interest rate on seven-day reverse repo agreements was set at 2 percent, according to the People’s Bank of China.
The central bank said the move aims to maintain stable liquidity in the banking system by the end of the year.
A reverse repurchase 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.