The Financial Express

PBOC drains 30b yuan from market

| Updated: October 25, 2019 13:53:33

File Photo (Collected) File Photo (Collected)

The People's Bank of China (PBOC), the central bank of China, drained 30 billion yuan (4.24 billion US dollars) from the financial system Friday.

The PBOC did not conduct any operation of reverse repos, a liquidity-injecting process in which the central bank purchases securities from commercial banks through bidding with an agreement to sell them back in the future.

The central bank has suspended such operation for six trading days in a row, reports Xinhua.

On the other hand, 30 billion yuan of reverse repos matured Friday, resulting in a net liquidity withdrawal of 30 billion yuan.

China vowed to keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.

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