BEIJING, May 12 (Xinhua) — China’s central bank continued to inject funds into the financial system through open market operations Friday.
The People’s Bank of China said it has conducted 2 billion yuan (about 287.85 million U.S. 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, according to 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.