BEIJING, Oct. 9 -- China's central bank conducted 20 billion yuan (about 2.79 billion U.S. dollars) of 14-day reverse repos at an interest rate of 1.8 percent Monday.

The move aims to keep liquidity stable in the banking system, the People's Bank of China said in a statement.

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.