BEIJING, 6 MAY / WAM / The People’s Bank of China, the central bank, today, Monday, conducted seven-day reverse repurchase operations, worth two billion yuan (about 282 million US dollars), at an interest rate of 1.8 percent.
The Chinese “Xinhua” news agency quoted the Central Bank as saying that this step aims to maintain reasonable and ample liquidity in the banking system.
Reverse repo operations are operations in which the central bank buys securities from commercial banks through submitting bids, with an agreement to resell them again in the future.
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