People's Bank of China (PBC) announced on Thursday seven-day 7.1 billion yuan (about $993.6 million) reverse repos at an interest rate of 1.7 percent. The move aims to maintain ample liquidity conditions in the banking system, the PBC explained. A reverse repo is a monetary policy tool used by central banks to inject liquidity into the market by purchasing securities from commercial banks with an agreement to sell them back at a later date.
