BEIJING - China's central bank has injected nearly 2 trillion yuan ($320 billion) into the monetary market via a new liquidity support tool to meet rising cash demand ahead of the Spring Festival holiday.

The injection was made through contingent reserve arrangement, according to the Financial News.

The People's Bank of China also unleashed around 450 billion yuan by lowering deposit reserve requirements for inclusive finance, 398 billion yuan through medium-term lending facility, and 126.3 billion yuan via pledged supplementary lending.

The bank will continue to use policy tools in a flexible manner to ensure reasonable and stable liquidity during the holiday period, according to the report.

China has decided to maintain a prudent and neutral monetary policy in 2018 as it strives to balance growth and risk prevention.