BEIJING, May 13 -- China's central bank Thursday conducted 10 billion yuan (about 1.55 billion U.S. dollars) 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. China will adopt a prudent monetary policy that is flexible, precise, appropriate and moderate in 2021, according to this year's government work report. Xinhua
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