PBOC Finishes Draining Funds It Injected Before Lunar New Year
- Central bank withdraws 1.6 trillion yuan in four weeks
- Ample liquidity in banking system for now, analyst says
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China’s central bank used open-market operations to pull funds from the financial system for a fourth consecutive week, all but mopping up a record amount of cash injected before the Lunar New Year holidays.
The People’s Bank of China drained a net 205 billion yuan ($31.5 billion) through reverse-repurchase agreements, taking a four-week withdrawal to 1.58 trillion yuan. That’s close to the net injections of 1.69 trillion yuan before last month’s festival.