China’s central bank conducts reverse repos to boost liquidity in banking system

China’s central bank conducted seven-day reverse repos worth 571.9 billion yuan (about 80.96 billion U.S. dollars) on Friday, with an interest rate of 1.7 percent.

The move aims to maintain reasonable and ample liquidity in the banking system, according to a statement from the central bank.

Reverse repos are a mechanism used by central banks to buy securities from commercial banks, with an agreement to sell them back to them at a later time. The operations aim to improve liquidity and enhance financial stability in the markets.