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HomeEconomicChina's Central Bank Adds Liquidity Via Reverse Repos

China’s Central Bank Adds Liquidity Via Reverse Repos

BEIJING, May 29 (Xinhua) — China’s central bank conducted 250 billion yuan (35.16 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Wednesday.

   The move aims to keep month-end liquidity in the banking system stable, the central bank said.

   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. 

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