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China’s central bank continues to drain liquidity

Updated: Sep 26,2018 1:33 PM     Xinhua

BEIJING — China’s central bank drained 40 billion yuan ($5.8 billion) from the financial system on Sept 26, with the volume of maturing securities exceeding new injections.

The People’s Bank of China (PBOC) didn’t pump any money into the market through open market operations, while 40 billion yuan of securities matured on Sept 26, leading to a net withdrawal of 40 billion yuan.

It was the fourth consecutive working day with liquidity drains in the financial system.

The PBOC said the liquidity level in the banking system was at a relatively high level, which can offset the impact of maturing securities.

China vowed to maintain control over the floodgates of monetary supply and keep liquidity at a reasonable and ample level, according to a statement issued after a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee in July.

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