China's central bank said Friday that it will continue to flexibly make use of a combination of tools to keep liquidity reasonably stable during the coming Lunar New Year holiday.

The People's Bank of China said it will continue to use its medium-term lending facility to supplement mid- and long-term liquidity. The central bank also said it will conduct reverse repos at appropriate times. The central bank announced earlier Friday, saying it has released temporary liquidity worth almost 2 trillion yuan. The move is aimed at satisfying heavy cash demand before the holiday. It also reflects policymakers sensitivity to risks related to a cash squeeze after the government's clampdown on riskier forms of financing last year.