(MENAFN)China's central bank on Thursday, March 4th, managed 10 billion Yuan (about USD1.54 billion) of reverse repos to sustain reasonably ample liquidity in the banking system.
According to a report on the website of the People's Bank of China, the interest rate for the seven-day reverse repos was put 2.2 percent.
With 20 billion reverse repos hitting on the same day, the move led to a net liquidity removal of 10 billion yuan from the marketplace.
A reverse repo is a procedure in which the central bank buys securities from commercial banks through bidding, with an accord to sell them back in the future.
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