China’s Central Bank Injects More Liquidity Through Reverse Repurchase Agreements

China’s central bank continued to inject money into the financial system through open market operations on Wednesday.

The People’s Bank of China said on its website that it conducted a seven-day reverse repurchase transaction for 300 billion yuan (about 43.63 billion US dollars) at an interest rate of 2%.

The move aims to maintain stable liquidity through the end of the month, according to the central bank.

Reverse repo operations, known as “reverse repos”, are operations in where the central bank buys bonds from commercial banks by auction, with the agreement to sell them back to them in future.