BEIJING, Dec. 8 (Xinhua) -- China's central bank injected liquidity into the banking system through open market operations on Tuesday.
The People's Bank of China injected 60 billion yuan (about 9.2 billion U.S. dollars) into the market through seven-day reverse repos at an interest rate of 2.2 percent, according to a statement on its website.
With 20 billion yuan of reverse repos maturing on the same day, this led to a net liquidity injection of 40 billion yuan.
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.