China’s central bank adds liquidity worth $19.36 billion

China’s central bank announced the conduction of 137 billion yuan (about $19.36 billion) of seven-day reverse repos at an interest rate of 1.8% on Tuesday.
The move aims to keep liquidity in the banking system reasonable and ample, the People’s Bank of China said in a statement, according to Chinese News Agency Xinhua.
On Dec. 29, the People’s Bank of China conducted a seven-day reverse repos worth 195 billion yuan (about $27.53 billion) at an interest rate of 1.8%.
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. (QNA)