China’s central bank conducts $17.43 billion in reverse repos

The People’s Bank of China conducted seven-day reverse repos today, worth 125 billion yuan (about $17.43 billion), at an interest rate of 1.5 percent.

The bank explained – in a statement – reported by the Chinese news agency “Xinhua” – that this step aims to maintain liquidity in the banking system at a reasonable level.

Reverse repos are operations in which the central bank buys securities from commercial banks through bidding, with an agreement to resell them to them again in the future.