China central bank conducts 10b yuan reverse repos


China's central bank on Thursday conducted 10 billion yuan (about 1.53 billion U.S. dollars) of reverse repos to maintain reasonably ample liquidity in the banking system, Xinhua reports.

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.

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 will adopt a prudent monetary policy that is flexible, precise, appropriate and moderate in 2021, according to this year's government work report.