China c. bank conducts 2b yuan of reverse repos

The People’s Bank of China (PBC) conducted two billion yuan ($281 million) of seven-day reverse repos at an interest rate of 1.8 per cent on Thursday, Xinhua reported.

This step aims to maintain reasonable and ample liquidity in the banking system, as per the statement.

Reverse repos involve the central bank buying securities from commercial banks through bidding, with an agreement to sell them back in the future.

(1 United States dollar = 7.25 Chinese yuan)