China's central bank conducts 10b yuan of reverse repos

BEIJING -- China's central bank Friday conducted 10 billion yuan (about $1.54 billion) of reverse repos to maintain reasonably ample liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.2 percent, according to a statement on the website of the People's Bank of China.

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.