This undated file photo shows the headquarters of the People's Bank of China, China's central bank, in Beijing, China. (PHOTO / XINHUA)

BEIJING - China's central bank Friday conducted 300 billion yuan (about 47.36 billion US dollars) of reverse repos to maintain liquidity in the banking system.

The interest rate for the 7-day reverse repos was set at 2.1 percent, according to the People's Bank of China.

The move aims to keep month-end liquidity in the banking system stable, the central bank said.

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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.