CHINA China's central bank skips open market operations for 13th day

CHINA

China's central bank skips open market operations for 13th day

Xinhua

14:45, April 08, 2019

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The headquarters of the People's Bank of China. (Photo: Xinhua/Cai Yang)

BEIJING, April 8 (Xinhua) -- China's central bank continued to skip open market operations for the 13th consecutive trading day on Monday, citing abundant liquidity in the banking system.

Due to a high level overall liquidity, the banking system can offset the impact of liquidity-reducing factors such as reserve requirement payment of financial institutions, according to the People's Bank of China.

No reverse repo is due on Monday.

The overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost of China's interbank market, increased 1.1 basis points to 1.428 percent Monday.

A reverse repo is a process by which 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 year.

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