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China’s central bank skips open market operations for 17th trading day

Updated: Aug 13,2018 3:58 PM     Xinhua

BEIJING — China’s central bank has suspended open market operations for 17 trading days in a row, citing abundant liquidity in the financial system.

Liquidity in the banking system is at a “relatively high” level, which can offset the impact from factors such as repaying local debt, the People’s Bank of China (PBOC) said on its website on Aug 13.

No reverse repos will mature this week.

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.

PBOC has said that the country’s prudent monetary policy will be kept neutral and be neither too tight nor too loose.

The central bank 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 the bank’s second-quarter report.

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