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China’s central bank skips open market operations

Updated: Feb 3,2019 2:23 PM     Xinhua

BEIJING — China’s central bank skipped open market operations on Feb 3, citing abundant liquidity in the banking system.

No reverse repos will mature on Feb 3, according to the People’s Bank of China (PBOC), the central bank.

“Liquidity in the banking system is at a relatively high level, able to absorb the impacts of cash injections,” a PBOC statement said.

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

China will keep its prudent monetary policy “neither too tight nor too loose” while maintaining market liquidity at a reasonably ample level in 2019, according to the annual Central Economic Work Conference held in December.