China’s Central Bank Continues To Add Liquidity Via Reverse Repos

China’s central bank continued to inject funds into the financial system through open market operations on Thursday.

T he People’s Bank of China said on its website that it has conducted 453 billion yuan (about 66.7 billion U.S. dollars) of seven-day reverse repos at an interest rate of 2 percent.

The move is aimed at keeping liquidity reasonable and ample in the banking system, according to the central bank.

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