China’s central bank injects 541 billion yuan in overnight reverse repos

China’s central bank conducted 541 billion yuan (about 74 billion U.S. dollars) in overnight reverse repurchase agreements (reverse repos) on Tuesday, according to an official statement. A reverse repo is a short-term tool in which the central bank buys securities from commercial banks with an agreement to sell them back the next day. The move temporarily adds cash to the banking system. The operation was conducted at an interest rate of 1.4 percent, the statement said.