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BEIJING, Feb. 7 (Xinhua) — China’s central bank continued to inject money into the financial system through open market operations on Tuesday.
The People’s Bank of China said on its website that it conducted seven-day reverse repo transactions worth 393 billion yuan (about 57.82 billion U.S. dollars) at an interest rate of 2 percent.
The move aims to maintain reasonable and ample liquidity in the banking system, according to the central bank.
Reverse repo operations, known as a “reverse repo”, are operations in which the central bank buys securities from commercial banks through bidding, with the agreement to sell them back to them in the future.
