China’s central bank conducted 381 billion yuan (about 53.65 billion U.S. dollars) of seven-day reverse repos at an interest rate of 1.8 percent Monday.
It also conducted 90 billion yuan of 14-day reverse repos at an interest rate of 1.95 percent.
The move aims to keep liquidity reasonable and ample at the end of the year, the People’s Bank of China said in a statement.
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
