The People's Bank of China on Friday announced that it will conduct 14-day reverse repo operations with fixed volumes through interest-rate bidding, with winning bids determined at multiple price levels.

Effective immediately, the move is aimed at maintaining abundant liquidity in the banking system and meeting the differentiated funding needs of various participating institutions in an improved manner, the central bank said in a statement.

The timing and scale of these operations will be determined based on liquidity management requirements, per the statement.

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