China's central bank adds liquidity via reverse repos

BEIJING, June 12 (Xinhua) -- China's central bank continued to inject funds into the financial system through open market operations Monday.

The People's Bank of China said that it conducted 2 billion yuan (about 280.85 million U.S. dollars) of seven-day reverse repos at an interest rate of 2 percent.

The move is aimed at keeping liquidity reasonable and ample in the banking system, according to the central bank.

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.