The seven-day reverse repos were fixed at an interest rate of 2.1 per cent, as per the People’s Bank of China.
China’s central bank, People’s Bank of China, purchased reverse repos worth 2 billion yuan to ensure that liquidity remained stable in the nation’s banking system. A reverse repo or a reverse repurchase agreement involves purchasing securities with the aim of returning or reselling those same assets sometime in the future to earn a profit.
The decision was undertaken to keep liquidity stable in the banking system, said China’s central bank.
Fibre2Fashion News Desk (NB)