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China's central bank conducts 10 bln yuan of reverse repos

BEIJING
2021-07-08 10:33

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BEIJING, July 8 (Xinhua) -- China's central bank Thursday conducted 10 billion yuan (about 1.55 billion U.S. dollars) of reverse repos to maintain reasonably ample 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.

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 increase the financial support for the real economy, especially the micro, small and medium-sized enterprises, a State Council executive meeting decided Wednesday.

To that end, the country will adopt monetary tools such as cuts in the reserve requirement ratio for banks at an appropriate time, the meeting said.
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