China's central bank pumped 1.2 trillion yuan (about 173.3 billion U.S. dollars) into the financial system via reverse repos on Monday to maintain ample liquidity amid the coronavirus outbreak.

The People's Bank of China (PBOC) said the overall liquidity in the banking system will be 900 billion yuan more than the same period last year.

The PBOC will use various monetary policy tools to ensure sufficient liquidity amid the epidemic. It will provide relending funds of 300 billion yuan to major national banks and some local banks in key provinces like Hubei and enhance credit support for the manufacturing sector, as well as small, micro and private enterprises, the bank said.

Read more: PBOC to keep liquidity ample amid coronavirus outbreak

Meanwhile, 1.05 trillion yuan of reverse repos matured Monday, resulting in a net injection of 150 billion yuan. This will lead to 900 billion yuan more liquidity in the banking system than that recorded in the same period last year, the PBOC said.

The move aims to offset the impact of reverse repos maturing and the concentrated maturing of financial market funds and to keep liquidity in the banking system at a reasonably sufficient level in the epidemic control period, according to a statement on the website of the central bank.

The PBOC will continue to pay close attention to the liquidity situation and maintain macro liquidity at a reasonably ample level, the statement 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. 

(With input from Xinhua)