China’s central bank conducts $24.4 billion in reverse repos

China’s central bank conducts $24.4 billion in reverse repos. Today, the People’s Bank of China conducted reverse repos worth 175.4 billion yuan (about $24.46 billion), with a seven-day maturity and an interest rate of 1.5%.

The central bank explained in a statement, reported by the Chinese news agency Xinhua, that this move aims to maintain liquidity in the banking system at a reasonable level.

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