(Yicai  Global) June 4 -- China's central bank the People's Bank of China  withdrew CNY90 billion (USD13 billion) worth of cash from its monetary  system today.

The bank conducted CNY60 billion  in seven-day reverse repurchases against CNY150 billion in obligations  maturing from an earlier operation, which in effect sluiced CNY90  billion in cash out of the system.

Reverse  repos agreements are primary tools financial institutions and banks use  to provide temporary lending facilities to fund ongoing operations,  where a buyer agrees to temporarily buy a basket of securities for a  fixed period and to sell them back at a somewhat higher price via the  reverse repo agreement.

The interest rate for the open market operation was unchanged at 2.55 percent.

Editor: Ben Armour