Central bank resumes open market operations

The central bank on Tuesday resumed open market operations to inject liquidity into the money market after suspending such operations over the past five trading days. The People’s Bank of China (PBOC) conducted 80 billion yuan ($11.6 billion) of sevenday reverse repos at an interest rate of 2.55 percent. No reverse repo was due on Tuesday. A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.