China's central bank adds liquidity via reverse repos

BEIJING -- China's central bank continued to inject funds into the financial system through open market operations Sunday.

The People's Bank of China said that it conducted 196 billion yuan ($27.3 billion) of seven-day reverse repos at an interest rate of 1.9 percent.

The move is aimed at keeping liquidity reasonable and ample in the banking system, according to the central bank.

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.