China’s central bank conducted 10 billion yuan (US$1.51 billion) 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.
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.
The government remains confident in its economic targets and is unperturbed by movements in the global financial sector, the Covid situation in Beijing and Shanghai has come under control with cases coming down giving confidence to top authorities on the trajectory.
