LINE

Text:AAAPrint
Economy

China central bank continues to skip open market operations

1
2018-01-05 13:47Xinhua Editor: Gu Liping ECNS App Download

China's central bank suspended open market operations for the 10th working day Friday, citing sufficient liquidity in the banking system.

Liquidity was at a "relatively high level," which can offset the effect from the depositing of required reserves at financial institutions, the People's Bank of China (PBOC) said in a statement.

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.

The suspension of reverse repos has lead to a net withdrawal of 510 billion yuan (about 78.7 billion U.S. dollars) from China's money market this week, as the same amount of reverse repo contracts matured in the first week of 2018.

The PBOC said earlier that it would conduct open market operations in a flexible way to meet the liquidity needs of banks.

China will continue a prudent and neutral monetary policy in 2018 as the world's second-largest economy strives to balance growth with risk prevention.

"Prudent monetary policy should be kept neutral, the floodgates of monetary supply should be controlled, and credit and social financing should see reasonable growth," said a statement released after the Central Economic Work Conference.

  

Related news

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2018 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.