BEIJING, Dec. 16 (Xinhua) -- China's central bank injected 10 billion yuan (about 1.53 billion US dollars) into the banking system through seven-day reverse repos at an interest rate of 2.2 percent on Wednesday.

File photo: CFP

With 20 billion yuan of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 10 billion yuan from 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.