China’s central bank conducts $13.4 bln in reverse repos

The People’s Bank of China (PBOC) conducted reverse repos worth 96.5 billion yuan (about $13.4 billion) for seven days on Tuesday, at an interest rate of 1.5 percent.

The move aims to maintain liquidity in the banking system at a reasonable level, the PBOC said in a statement, Xinhua News Agency reported.

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