(Yicai Global) Oct. 18 -- China's central bank, the People's Bank of China, infused fresh funds into the financial system today, conducting a reverse repurchase for the first time this month.
 

The PBOC conducted the seven-day reverse repo of CNY30 billion (USD4.2 billion), with no previous reverse repos maturing today. The bid rate was 2.55 percent, unchanged from the previous open market operation.

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