China’s central bank conducted 26 billion yuan ($3.61 billion) of seven-day reverse repos at an interest rate of 1.8% Wednesday.

The People’s Bank of China said in a statement that the move aims to keep liquidity in the banking system reasonable and ample, Chinese News Agency (Xinhua) reported.

On Aug. 22, China’s central bank conducted 111 billion yuan (about $15.42 billion) of seven-day reverse repos at an interest rate of 1.8%.

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.

Source: Qatar News Agency