China's central bank conducts 20 bln yuan of reverse repos

BEIJING, Dec. 24 (Xinhua) -- China's central bank on Friday conducted a total of 20 billion yuan (about 3.14 billion U.S. dollars) of reverse repos to maintain liquidity in the banking system.

The amount included 10 billion yuan of seven-day reverse repos at an interest rate of 2.2 percent, and 10 billion yuan of 14-day reverse repos at an interest rate of 2.35 percent, according to the People's Bank of China.

The move was intended to maintain stable year-end liquidity in the banking system, the central bank said.

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.