BEIJING, Jan. 7 (Xinhua) -- The People's Bank of China (PBOC) suspended open market operations on Monday, citing abundant liquidity in the banking system.

Reverse repos worth 170 billion yuan matured on Monday, meaning the central bank withdrew the same amount of funds from financial institutions.

The PBOC said Monday's operation was aiming to maintain "reasonably abundant liquidity" in the banking system.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The central bank will maintain a prudent and neutral monetary policy, with easing or tightening only as appropriate, and make the financial sector better serve the real economy, according to a report published by the bank in early November