Chinese Central Bank Withdraws USD$38.76 Billion in Liquidity via OMO in a Week

The People’s Bank of China (PBOC) withdrawn liquidity from the Chinese financial system during the week from 3 – 7 August.

PBOC announced on 7 August that it would undertake 10 billion yuan in 7-day reverse repo operations that date with a rate of 2.20%, for a net withdrawal of 10 billion yuan due to the maturation of 20 billion yuan in reverse repos on the same day.

According to PBOC during the period from 3 – 7 August PBOC’s 10 billion yuan in reverse repo operations stood against 280 billion yuan in maturing central bank reverse repos, for a net withdrawal of 270 billion yuan (USD$38.76 Billion) in liquidity.

PBOC said that liquidity in the Chinese banking system remained “rationally ample.”

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