(Yicai Global) Feb. 14 -- China's central bank the People's Bank of China continued to milk liquidity from its monetary system, as it skipped open market operations for the fourth day in a row today.
 

Liquidity in the banking system is ample enough to offset maturing previous reverse repurchases, PBOC reiterated in a press briefing explaining today's decision.
 

With CNY200 billion (USD 29.6 billion) in previous reverse repos maturing today, the move, in effect, conduits that amount of cash from the market.
 

The latest market data confirm PBOC's liquidity claim. Despite four straight days of inaction, the market interest rate stayed downward today.
 

The overnight Shanghai Interbank Offered Rate fell 0.1 basis points to 1.7210 percent. The one-week term rate was down 3.2 basis points to 2.3300 percent, and that for three-month loans also dropped 2.2 basis points to 2.8300.
 

The PBOC injected funds into the market last month through cuts in commercial banks' required deposit-reserve ratios and medium-term lending facility loan grants, as well as reverse repo operations, to decant an abundance of cash to satisfy strong pre-holiday demand.

Editor: Ben Armour