China's central bank skips reverse repos

The People's Bank of China, the country's central bank, skipped open market operations via reverse repos Monday.

The banking system reports relatively high liquidity at present, the PBOC said in an online statement.

With 60 billion yuan (US$8.94 billion) of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 60 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 will pursue a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.