(Yicai Global) Jan. 14 -- The People's Bank of China withdrew CNY8 billion (USD1.2 billion) in liquidity from the financial system via open market operations for the second straight day today after bigger cuts last week.
The bank carried out CNY2 billion in seven-day reverse repos today against a tally of CNY10 billion in maturing short-term lending instruments.
The purpose of today’s operation is to keep the banking system's liquidity “reasonably ample,” the PBOC reiterated in a statement.
The central bank pulled CNY36 billion (USD5.6 billion) in liquidity out of its banking system during the first four days of this week after a reduction of CNY505 billion (USD78 billion) last week.
Editor: Emmi Laine