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China’s central bank skips open market operations

Updated: Jan 28,2019 1:41 PM     Xinhua

BEIJING — China’s central bank on Jan 28 did without open market operations for the sixth trading day, citing abundant liquidity in the banking system.

No reverse repo will mature on Jan 28, 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 factors including cash injections and payments for government bond issuance,” 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 last month.