News

China’s central bank conducts $80.96 billion via reverse repos

Beijing (WAM): China’s central bank conducted 571.9 billion yuan (about US$80.96 billion) of seven-day reverse repos at an interest rate of 1.7 per cent Friday.

Xinhua News Agency quoted the People’s Bank of China as saying that the move aims to keep liquidity reasonable and ample in the banking system.

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.

NM

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