(Yicai Global) June 30 -- The People's Bank of China withdrew a net CNY90 billion (USD12.7 billion) from the financial system via open market operations today following another withdrawal of CNY40 billion yesterday.
A previous reverse repo of CNY90 billion matured today. The PBOC conducted no new ones against it.
PBOC conducted a total of CNY1.54 trillion reverse repos in June as well as CNY200 billion medium-term lending facilities against CNY2.3 trillion maturing previous operations, thus withdrawing CNY560 billion in total from the financial system for the month.
Reverse repo agreements are primary tools financial institutions and banks use to provide temporary lending facilities to fund ongoing operations, where a buyer undertakes to temporarily buy a basket of securities for a fixed period and to sell them back at a slightly higher price.
Editor: Ben Armour