BEIJING, Nov. 19 (Xinhua) -- China's central bank drained liquidity from the banking system through open market operations on Thursday.
The People's Bank of China injected 70 billion yuan (about 10.7 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 120 billion yuan of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 50 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. Enditem