China's central bank conducts 200b yuan of reverse repos

BEIJING - China's central bank Wednesday conducted 200 billion yuan ($31.6 billion) of reverse repos to maintain liquidity in the banking system.

The interest rate for the 14-day reverse repos was set at 2.25 percent, according to the People's Bank of China.

The move aims to keep the liquidity stable ahead of the Spring Festival, 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.