BEIJING, Feb. 7 -- China's central bank conducted 396 billion yuan (about 55.74 billion U.S. dollars) of 14-day reverse repos at an interest rate of 1.95 percent Wednesday.

The move aims to keep liquidity stable ahead of the Spring Festival that falls on Feb. 10 this year, 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.