BUSINESS China boosts liquidity with open market operations


China boosts liquidity with open market operations


14:57, September 20, 2018

BEIJING, Sept. 20 (Xinhua) -- China's central bank on Thursday injected a liquidity of 70 billion yuan (about 10.2 billion U.S. dollars) through open market operations. 

The People's Bank of China (PBOC), the central bank, said in a statement that it conducted the operation via seven-day reverse repos with an interest rate of 2.55 percent and 14-day reverse repos at 2.7 percent.


PBOC (Photo: VCG)

Previous reverse repos worth 100 billion yuan matured Thursday, meaning that the net market liquidity dropped by 30 billion yuan.

The PBOC will make policies more forward-looking, flexible and effective, maintain proper control over the floodgate of money supply and keep liquidity at a reasonable and abundant level, according to a quarterly report released earlier this month.

China's prudent monetary policy will be "kept neutral and be neither too tight nor too loose," said the report.

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