The People's Bank of China, China's central bank, drained a net of 245 billion yuan (35.25 billion U.S. dollars) from the financial system via open market operation this week.
On Friday, the central bank conducted 160 billion yuan of 7-day reverse repos and90 billion yuan of 14-day repos with yields keeping flat at 2.25 percent and 2.40 percent, respectively.
The move showed the central bank's intention to hedge against the massive fiscal deposits release, said insiders, adding that cautious attitude towards the liquidity outlook was still necessary, as the central bank might maintain liquidity condition tightly balanced before the Spring Festival holiday.
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