This undated file photo shows the headquarters of the People's Bank of China (PBOC), China's central bank, in Beijing, China. (PHOTO / XINHUA)

BEIJING - China's central bank on Wednesday conducted 10 billion yuan (US$1.53 billion) of reverse repos to maintain reasonably ample liquidity in the banking system.

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

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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.

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.

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China will adopt a prudent monetary policy that is flexible, precise, appropriate and moderate in 2021, according to this year's government work report.