China's central bank on Wednesday conducted 10 billion yuan (about 1.58 billion U.S. dollars) of reverse repos to maintain liquidity in the banking system.
The interest rate for the 7-day reverse repos was set at 2.1 percent, according to the People's Bank of China.
With 200 billion yuan of reverse repos maturing on Wednesday, this led to a net liquidity withdrawal of 190 billion yuan from the market.
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. -
