(Yicai Global) June 3 – The country's central bank the People's Bank of China has kept its monetary system balanced today by conducting open market operations that just offset today's maturing reverse repurchases.

The PBOC conducted CNY 80 billion in seven-day reverse repos which was just enough to offset the same amount maturing today.

Reverse repos are agreements that are primary tools financial institutions, banks use to provide temporary lending facilities to fund ongoing operations, where a buyer undertakes to temporarily buy a basket of securities for a fixed period and to sell them back at a slightly higher price via a reverse repo agreement.

The US Federal Reserve and other central banks also use reverse repos to control money supply.

Editor: Ben Armour