The People's Bank of China (PBOC), China's central bank, said it will inject 270 billion yuan (about 39 billion U.S. dollars) through seven-day reverse bond repurchase agreements on Wednesday.

To maintain reasonable and sufficient liquidity, the central bank conducted the operations with seven-day reverse repos at an interest rate of 2.55 percent, the announcement from the PBOC reads.

On a net basis, the PBOC will inject 250 billion yuan into the market for the day, as 20 billion yuan worth of reverse repos are set to expire on Wednesday. The amount of daily net cash injection via reverse repo operations is the biggest since January 17, 2019.

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 inputs from Xinhua)