China's central bank conducts 50b yuan of reverse repos

BEIJING - China's central bank on Monday conducted a total of 50 billion yuan ($7.9 billion) of reverse repos to maintain liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.2 percent, according to the People's Bank of China.

The move was intended to maintain stable year-end liquidity in the banking system, the central bank said.

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.