China’s Central Bank continues to add liquidity via reverse repos

China’s Central Bank continued to inject funds into the financial system through open market operations on Tuesday.

The People’s Bank of China said on its website that it had conducted 91 billion Yuan (about 13.4 billion U.S. dollars) of seven-day reverse repos at an interest rate of two per cent.

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

The move is aimed at keeping liquidity reasonable and ample in the banking system, according to the central bank.

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