BEIJING, Nov. 15 (Xinhua) -- China's central bank on Wednesday added liquidity to the banking system through operations of medium-term lending facility (MLF) and reverse repos.

The People's Bank of China injected 1.45 trillion yuan (about 202.08 billion U.S. dollars) into the market through one-year MLF with an interest rate of 2.5 percent.

The MLF tool helps commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

The central bank also conducted seven-day reverse repos worth 495 billion yuan at an interest rate of 1.8 percent.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The move aims to offset the impacts of peak tax period and government bond issuance, and to keep liquidity in the banking system reasonable and ample, the central bank said. Enditem

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