BEIJING - China's central bank injected 20 billion yuan ($3.03 billion) into the banking system through seven-day reverse repos at an interest rate of 2.2 percent on Tuesday.

With 70 billion yuan of reverse repos maturing on the same day, this led to a net liquidity withdrawal of 50 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 pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.