China’s central bank drains 20 bln yuan from market

China’s central bank drained 20 billion yuan (2.83 billion U.S. dollars) from the financial system Wednesday.

The People’s Bank of China did not conduct any operation of reverse repos, a liquidity-injecting process in which the central bank purchases securities from commercial banks through bidding with an agreement to sell them back in the future.

On the other hand, 20 billion yuan of reverse repos matured Wednesday, resulting in a net liquidity withdrawal of 20 billion yuan.

China vowed to keep its prudent monetary policy “neither too tight nor too loose” while maintaining market liquidity at a reasonably ample level in 2019.