Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road Database
Economy

China's central bank resumes open market operation after 36-day suspension

December 17, 2018


Abstract : China's central bank resumed open market operation that added cash to the financial system Monday, ending a suspension for a record of 36 straight trading days.

BEIJING, Dec. 17 (Xinhua) -- China's central bank resumed open market operation that added cash to the financial system Monday, ending a suspension for a record of 36 straight trading days.

The People's Bank of China conducted 160 billion yuan (23.2 billion U.S. dollars) of a seven-day reverse repo, a liquidity-injecting process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The move aimed to offset the impact of factors such as tax payments, government bond issuance and financial institutions' payment of reserve requirement ratios, and keep liquidity at a reasonable and sufficient level, the central bank said on its website.

The interest rate for the operation was unchanged at 2.55 percent.

Guotai Junan Securities economist Hua Changchun expected the central bank to maintain liquidity at a moderately easy level in the coming weeks to cope with downward economic pressures and year-end liquidity strain.

In Monday's interbank market, the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, fell slightly to 2.625 percent. The rate for one-month loans climbed to 3.002 percent, the highest level since July 27.

Scan the QR code and push it to your mobile phone

Keyword: China-central-bank China-banking

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial