China's central bank conducts reverse repos to boost liquidity

BEIJING, Dec. 27 (Xinhua) -- China's central bank on Tuesday conducted 208 billion yuan (about 29.9 billion U.S. dollars) of reverse repos to maintain liquidity in the banking system.

The amount included 194 billion yuan of seven-day reverse repos at an interest rate of 2 percent, and 14 billion yuan of 14-day reverse repos at an interest rate of 2.15 percent, according to the People's Bank of China.

The move is aimed at keeping liquidity stable in the banking system at the end of the year, 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.