China's central bank on Monday (March 20) made a net cash injection via the use of an open market operation tool that injects cash into the banking system.

The People's Bank of China (PBOC) conducted 100 billion yuan (14.49 billion U.S. dollars) of reverse repos, a process where the central bank purchases securities from banks through bidding with an agreement to sell them back in the future.

The operations included seven-day reverse repo priced to yield 2.45 percent, 14-day contracts with a yield of 2.6 percent, and 28-day agreements with a yield of 2.75 percent, according to a central bank statement.

The injection saw a net 40 billion yuan (5.80 billion U.S. dollars) pumped into the market, offset by 60 billion yuan (8.71 billion U.S. dollars) in maturing reverse repos.

In Friday's interbank market, the overnight Shanghai Interbank Offered Rate, which measures the costs by which banks lend to one another, climbed 19.2 basis points to 2.633 percent. In addition, the rate for one-month loans rose 5.57 basis points to 4.2775 percent.

According to the government work report delivered at the annual parliamentary session, China will pursue a prudent and neutral monetary policy in 2017, with the M2 money supply to grow by around 12 percent, one percentage point lower than the 2016 target. In 2016, the M2 money supply increased by 11.3 percent.