BEIJING, May 9 (Xinhua) -- China's central bank Wednesday injected funds into the banking system via open market operations to maintain liquidity.
The People's Bank of China (PBOC) conducted 60 billion yuan (9.4 billion U.S. dollars) of seven-day reverse repos and 40 billion yuan of 14-day reverse repos.
The interest rates for the seven-day and 14-day operations were 2.55 percent and 2.70 percent, respectively.
A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
Offset by 200 billion yuan of maturing reverse repos, the net injection on Wednesday stood at 100 billion yuan.
The PBOC has recently managed market liquidity through targeted moves rather than across-the-board adjustments of interest rates.
The central bank plans to keep monetary policy prudent and neutral, maintain a stable, reasonable level of liquidity, and oversee moderate growth of financial credit and social financing.
