China's central bank on Wednesday continued to pump cash into the banking system via reverse repos to maintain liquidity.

  The People's Bank of China injected 120 billion yuan (about 17.7 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 the website of the central bank.

  The move was intended to maintain reasonable and ample liquidity in the banking system, the central bank said.

  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.

  Source: Xinhua