China central bank drains 300 bln yuan from market

Source: Xinhua | 2020-02-24

The People's Bank of China (PBOC), the country's central bank, drained 300 billion yuan (about 43 billion U.S. dollars) from the market on Monday.

Citing reasonable and sufficient liquidity at present, the PBOC continued to skip open market operations via reverse repos on Monday. However, with 300 billion yuan of reverse repos maturing Monday, the PBOC actually drained 300 billion yuan from the market.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The country will continue to implement a proactive fiscal policy and prudent monetary policy, according to the annual Central Economic Work Conference held in December 2019.