China’s central bank conducts $97.2 bln in reverse repos

China’s central bank conducted 697 billion yuan (about $97.2 billion) in seven-day reverse repos on Tuesday at an interest rate of 1.5 percent.

The move aims to balance the impact of concentrated maturities of reverse repos in the open market and other factors, and maintain liquidity in the banking system at an appropriate level, the central bank said in a statement carried by the Chinese news agency Xinhua.

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.