China’s Central Bank Conducts Reverse Repos Friday

BEIJING, Nov. 15 (Xinhua) — China’s central bank conducted 981 billion yuan (about 136.27 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.5 percent Friday. The move aims to offset the impact of factors such as maturing medium-term lending facility (MLF) and tax payment peak, and to keep liquidity in the banking system adequate at a reasonable level, the central bank said. A batch of 1.45 trillion yuan worth of MLF is expected to mature Friday. 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.