The People's Bank of China (PBOC) conducted reverse buybacks worth 480 billion yuan (about 66.94 billion U.S. dollars) for 14 days at an interest rate of 1.65 percent.
The central bank revealed that the move aims to keep liquidity in the banking system at a reasonable level ahead of the upcoming Spring Festival holiday.
Reverse repo operations are operations in which the central bank buys securities from commercial banks through bidding, with an agreement to resell them to them again in the future.
Source (Al-Arabiya.net Website, Edited)
