(Yicai Global) Oct. 11 -- The People's Bank of China skipped open market operations again today, effectively withdrawing CNY30 billion (USD4.2 billion) worth of liquidity from the monetary system due to previous reverse repos maturing today.
For the week, the central bank has pulled a total of CNY300 billion of liquidity from the system by skipping open market operations to let the maturing reverse repos expire.
The PBOC has reiterated that liquidity is currently still at a high level. It has also sent the same message the last five trading days.
The bank has not conduct any OMOs for sixth straight trading days, including Sept. 29 and Sept. 30, ahead of last weeks seven day-long National Day holiday.
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