China's central bank conducts 200 bln yuan of reverse repos

BEIJING, Oct. 26 (Xinhua) -- China's central bank Tuesday injected 200 billion yuan (about 31.3 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 stable, 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.