Cen­tral bank drains liq­uid­ity from mar­ket

China Daily - - BUSINESS -

The Peo­ple’s Bank of China, the cen­tral bank, con­tin­ued to drain liq­uid­ity from the fi­nan­cial sys­tem on Thurs­day, with more re­verse re­pos ma­tur­ing than con­ducted. The PBOC con­ducted 40 bil­lion yuan ($5.8 bil­lion) of seven-day re­verse re­pos at an in­ter­est rate of 2.55 per­cent and 20 bil­lion yuan of 14-day re­verse re­pos at 2.7 per­cent, ac­cord­ing to a state­ment. The in­ter­est rates were un­changed from pre­vi­ous op­er­a­tions. dol­lar on Thurs­day, ac­cord­ing to the China For­eign Ex­change Trade Sys­tem. In China’s spot for­eign ex­change mar­ket, the yuan is al­lowed to rise or fall by 2 per­cent from the cen­tral par­ity rate each trad­ing day. The cen­tral par­ity rate of the yuan against the US dol­lar is based on a weighted av­er­age of prices of­fered by mar­ket mak­ers be­fore the open­ing of the in­ter­bank mar­ket each busi­ness day.

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