China’s central bank conducts $38.43 billion in reverse repos

China’s central bank conducted seven-day reverse repos today, worth 275.5 billion yuan (about $38.43 billion), at an interest rate of 1.5 percent.

The move aims to maintain liquidity in the banking system at a reasonable level, Xinhua News Agency reported today, according to a statement from the bank.

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.