BUSINESS China's central bank continues to skip open market operations

BUSINESS

China's central bank continues to skip open market operations

Xinhua

14:40, January 08, 2019

BEIJING, Jan. 8 (Xinhua) -- China's central bank continued to skip open market operations Tuesday, citing abundant liquidity in the banking system.

VCG111184450465.jpg

The People's Bank of China (File photo: VCG)

With 20 billion yuan (about 2.9 billion US dollars) of reverse repos maturing Tuesday, the People's Bank of China (PBOC) effectively drained the same amount of liquidity from the market.

"Liquidity in the banking system is on a relatively high level," a PBOC statement said.

Through reverse repos, the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China will keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019, according to the annual Central Economic Work Conference held last month.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue