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

An employee of Lin'an Rural Commercial Bank counts banknotes at the bank's branch in Xitianmu area in Hangzhou, Zhejiang province, on Feb 25, 2020. [Photo by Hu Jianhuan/For China Daily]

BEIJING -- China's central bank on Thursday injected 10 billion yuan ($1.6 billion) into the financial system via reverse repos.

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

The move aims to keep the liquidity in the banking system reasonably stable, the central bank said.

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.