China’s central bank conducts 10b yuan of reverse repos

This file photo dated Sept 28, 2018 shows the headquarters of the People's Bank of China, the central bank, in Beijing. (PHOTO / VCG)

BEIJING – China's central bank Saturday conducted 10 billion yuan (US$1.5 billion) of reverse repos to maintain reasonably ample liquidity in the banking system.

A reverse repo is a process in which the central bank (People's Bank of China) purchases securities from commercial banks through bidding, with an agreement to sell them back in the future

The interest rate for the seven-day reverse repos was set at 2.2 percent, according to a statement on the website of the People's Bank of China.

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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.

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China will adopt a prudent monetary policy that is flexible, precise, appropriate and moderate in 2021, according to this year's government work report.