China’s Central Bank Conducts Reverse Repos Thursday

BEIJING, Oct. 24 (Xinhua) — China’s central bank conducted 798.9 billion yuan (about 112.07 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.5 percent Thursday. The move aims to offset the impact of a tax payment peak to keep liquidity reasonable and ample 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.