The People's Bank of China, China's central bank, conducted 100 billion yuan worth of 7-day reverse repos in Thursday's open market operation. It is the sixth time for the central bank to conduct 10 billion yuan worth of reverse repos after the central bank cut both the benchmark interest rates and required reserve ratio (RRR) in October.
Statistics show 200 billion yuan of reverse repos were due this week, and the central bank had offered 100 billion yuan of reverse repos on Tuesday. As a result, the central bank neither drained nor injected funds into the financial system through open market operations this week.
Traders noted that money market liquidity still remained relatively loose on the whole, which created conditions for the central bank to maintain a net neutral position in open market operations this week.
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