BEIJING -- China's central bank on Wednesday conducted 40 billion yuan (about $6.12 billion) of reverse repos to maintain stable liquidity in the banking system.
The interest rate for the seven-day reverse repos was set at 2.2 percent, according to a statement on the website of the People's Bank of China.
Meanwhile, 10 billion yuan of reverse repos matured on the same day, resulting in a net liquidity injection of 30 billion yuan.
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.
China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.
