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

BEIJING -- China's central bank Friday injected 10 billion yuan ($1.57 billion) into the financial system via reverse repos.

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

With 110 billion yuan of reverse repos maturing on the same day, the move resulted in net liquidity withdrawal of 100 billion yuan from the market.

The move aims to keep the liquidity in the banking system reasonably stable, 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.