Global EditionASIA 中文双语Français
Business
Home / Business / Finance

China's central bank drains 90b yuan from market

Xinhua | Updated: 2018-09-25 16:27
Share
Share - WeChat
The People's Bank of China (PBOC) pumped 60 billion yuan into the market through reverse repos, with 150 billion yuan of contracts maturing, leading to a net withdrawal of 90 billion yuan. [Photo/VCG]

BEIJING - China's central bank drained 90 billion yuan ($13 billion) from the financial system on Tuesday to ensure stable liquidity.

The People's Bank of China (PBOC) pumped 60 billion yuan into the market through reverse repos, with 150 billion yuan of contracts maturing, leading to a net withdrawal of 90 billion yuan.

The PBOC said the move was to maintain liquidity "at a reasonable and abundant level" as the liquidity level in the banking system can offset the impact of maturing securities.

A reverse repo is a process by which the central bank bids and buys securities from commercial banks with an agreement to sell them back in the future.

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.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE