China's central bank drains 210b yuan from market this week

BEIJING - China's central bank drained 210 billion yuan ($30.57 billion) from the financial system this week as liquidity remained ample.

The People's Bank of China (PBOC) suspended open market operations for the whole week, while 210 billion yuan of reverse repo contracts matured, leading to a net withdrawal from the market.

The PBOC said in a statement Friday that it continued to suspend open market operations as total liquidity in the banking system remained high.

A reverse repo is a process by which the central bank bids and buys securities from commercial banks, with an agreement to sell back in the future.

The PBOC said earlier this week that it would continue to implement prudent monetary policy in the latter half of 2018 to ensure economic and financial stability.

The central bank said it would make policies more forward-looking, flexible and effective, ensure the proper policy intensity and tempo, enhance policy coordination and pay more attention to guiding expectations.