China's central bank skips reverse repos

BEIJING - The People's Bank of China (PBOC), the country's central bank, skipped open market operations via reverse repos Tuesday, citing reasonable and ample liquidity in the banking system.

With 100 billion yuan ($14.86 billion) of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 100 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.