China's central bank conducts 2 billion yuan of reverse repos

BEIJING -- China's central bank on Friday conducted 2 billion yuan (about $30.95 million) of reverse repos to maintain reasonably ample liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.2 percent, according to a statement on the website of the People's Bank of China.

Meanwhile, 2 billion yuan of reverse repos matured on the same day, resulting in zero injection into the market.

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.

China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.