BEIJING — China's central bank on Oct 26 conducted a total of 280 billion yuan (about $39.09 billion) of reverse repos to maintain liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2 percent, according to the People's Bank of China.

The move aims to offset the impacts of peak tax period and government bond issuance, and to keep liquidity in the banking system stable, 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.