(Yicai Global) July 27 -- The People's Bank of China maintained the flow of cash in the banking system at the same level as on the last trading day by conducting open market operations against reverse repo agreements maturing today.

The central bank conducted a seven-day reverse repo of CNY100 billion (USD14.1 billion) with an interest rate of 2.2 percent this morning, while the same amount of previous ones matured.

The PBOC withdrew a net CNY617.7 billion last week as a large amount of OMOs matured during the period. Liquidity was still adequate, according to the central bank.

Reverse repo agreements are primary tools financial institutions and 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.

Editor: Ben Armour