China’s Central Bank Adds Liquidity of $280.85 Million Via Reverse Repos

China’s central bank continued to inject funds into the financial system through open market operations Monday.

The People’s Bank of China said that it conducted 2 billion yuan (about 280.85 million US dollars) of seven-day reverse repos at an interest rate of 2 percent.

The move is aimed at keeping liquidity reasonable and ample in the banking system, China’s (Xinhua) news agency reported citing the central bank.

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.

Source: Qatar News Agency