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BEIJING, Dec. 23 (Xinhua) -- China's central bank on Wednesday conducted 110 billion yuan (about 16.78 billion U.S. dollars) of reverse repos to maintain stable liquidity in the banking system.

The amount included 10 billion yuan of seven-day reverse repos at an interest rate of 2.2 percent, and 100 billion yuan of 14-day reverse repos at an interest rate of 2.35 percent, according to the People's Bank of China.

Meanwhile, 10 billion yuan of reverse repos matured on the same day, resulting in a net injection of 100 billion yuan into 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.