China’s Central Bank Conducts Reverse Repos Wednesday

BEIJING, Oct. 23 (Xinhua) — China’s central bank conducted 792.7 billion yuan (about 111.26 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 of factors including the maturity of reverse repos and tax period 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.