China’s Central Bank Conducts Reverse Repos Monday

BEIJING, Dec. 9 (Xinhua) — China’s central bank conducted 47.1 billion yuan (about 6.55 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.5 percent Monday. The move aims to keep liquidity in the banking system adequate at a reasonable level in the banking system, 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.