PBOC: Did Not Conduct Open Mkt Ops Friday Due Ample Liquidity

— PBOC Injects Net CNY80 Billion This Week

BEIJING (MNI) – The People’s Bank of China did not conduct open market operations on Friday due to ample liquidity in the market, the central bank said in a statement on its website.

Given that government spending strengthens at the end of the month, adding liquidity to the economy, the current liquidity in the banking system is at an ample level, the central bank said.

The lack of new repo offerings resulted in a CNY30 billion net drain in market liquidity for the day. The PBOC injected a net CNY80 billion this week.

The central bank drained a net CNY120 billion last week — its third consecutive weekly net drain.

The benchmark seven-day repo average was last at 2.4552%, compared with 3.0183% on Thursday.

–MNI Beijing Bureau; +86 (10) 8532 5998; email: [email protected]
–MNI BEIJING Bureau; +1 202-371-2121; email: [email protected]

Source: MNI

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