On Wednesday, China’s central bank kept adding money to the financial system through open market transactions.
On its website, the People’s Bank of China said that it has completed 4 billion yuan (or 575.33 million dollars) in seven-day reverse repos with a 2% interest rate.
According to the central bank, the action is intended to maintain a reasonable and ample level of liquidity in the financial system.
In a reverse repo, the central bank makes a bid to buy assets from commercial banks with the understanding that it will later sell the securities back. the Xinhua