Central bank conducts 2b yuan reverse repos

China's central bank on Tuesday conducted 2 billion yuan ($279 million) of reverse repos to maintain liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2 percent, according to the People's Bank of China.

The move aims to keep liquidity in the banking system reasonable and ample, the central bank said.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.