China’s central bank conducted 160.1 billion yuan (about US$22.7 billion) of seven-day reverse repos at an interest rate of 1.7 percent, as well as 74.5 billion yuan of 14-day reverse repos at an interest rate of 1.85 percent Monday.

Xinhua News Agency quoted the People’s Bank of China as saying that the move aims to keep liquidity reasonable and ample in the banking system at the end of the quarter.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

Source: Emirates News Agency