China's central bank conducts reverse repos to boost liquidity

BEIJING, Dec. 19 (Xinhua) -- China's central bank Monday conducted 85 billion yuan (about 12.2 billion U.S. dollars) of reverse repos to maintain liquidity in the banking system.

The amount included 9 billion yuan of seven-day reverse repos at an interest rate of 2 percent, and 76 billion yuan of 14-day reverse repos at an interest rate of 2.15 percent, according to the People's Bank of China.

The move aims to maintain reasonable and sufficient liquidity in the banking system at the end of the year, 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. ■