China's central bank drains liquidity from market
Xinhua | Updated: 2021-09-02 16:01
![](http://img2.chinadaily.com.cn/images/202109/02/613084c3a310efa1e3ba0b56.jpeg)
BEIJING -- China's central bank drained liquidity from the banking system through open market operations on Thursday.
The People's Bank of China conducted 10 billion yuan ($1.55 billion) of seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on its website.
With 50 billion yuan of reverse repos maturing on the same day, the move resulted in a net liquidity withdrawal of 40 billion yuan from the market.
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.
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