Off the wire
• Nuclear power important in China's future energy mix: report  • Zijin Mining's profit plummets in H1  • Two dozen militants killed in northern Afghan province in 2 days  • Police's fatal killing of man sparks tension in Kingston  • Urgent: Chinese premier urges joint actions against terrorism  • Urgent: South China Sea arbitration award has no impact on China's territorial sovereignty -- Chinese premier  • (Recast) Interview: World should heed U.S. interests in South China Sea arbitration -- Egyptian experts  • Interview: U.S. stirs up tension in South China Sea, Sudanese expert  • China opens softball world championships with win over Guatemala  • (resast with correction) South China Sea arbitration award "unfair": Ghanaian analysts  
You are here: 　 Home

PBOC drains 65 bln yuan from market

Xinhua, July 16, 2016 Adjust font size:

China's central bank drained 65 billion yuan (9.73 billion U.S. dollars) from the market this week.

This follows a net withdrawal of 645 billion yuan last week.

From Monday through Friday, the People's Bank of China (PBOC) conducted 130 billion yuan in seven-day reverse repos, a process by which central banks purchase securities from banks with an agreement to sell them back in the future.

The reverse repos were all priced to yield 2.25 percent, according to statements on the PBOC website.

Reverse repos worth 195 billion yuan matured this week, so the central bank effectively withdrew 65 billion yuan from the market.

The central bank's move shows that liquidity strain in the country's money market has eased. On Friday's interbank market, the benchmark overnight Shanghai Interbank Offered Rate, known as Shibor, rose 0.3 basis point to 1.996 percent. Endi