BEIJING - China's central bank on Tuesday conducted 110 billion yuan ($16.44 billion) of reverse repos to maintain liquidity in the banking system.

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

The move aims to keep stable liquidity in the banking system at the end of the first half of this year, the central bank said.

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.