China’s Central Bank Conducts Reverse Repos Wednesday

BEIJING, Oct. 16 (Xinhua) — China’s central bank conducted 642.4 billion yuan (about 90.24 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.5 percent Wednesday. The move aims to offset the impact brought by the expiration of the medium-term lending facility (MLF) and reverse repos, and 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.