China's central bank conducts 100 bln yuan of reverse repos

BEIJING, Oct. 21 (Xinhua) -- China's central bank Thursday injected 100 billion yuan (about 15.65 billion U.S. dollars) into the financial system via reverse repos.

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

The move aims to offset the impacts of tax period and government bond issuance, and to keep liquidity in the banking system at a reasonably sufficient level, 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.