China central bank conducts reverse repos to maintain liquidity

BEIJING, April 29 (Xinhua) -- China's central bank on Friday conducted 10 billion yuan (about 1.51 billion U.S. dollars) of reverse repos to maintain liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.1 percent, according to the People's Bank of China.

The move aims to keep liquidity in the banking system reasonably stable, the central bank said.

With 10 billion yuan of reverse repos maturing on the same day, the move resulted in zero net injection on Friday.

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.