PBOC drains a net CNY450 billion this week

The People’s Bank of China (PBOC) injected CNY150 billion ($21.10 billion) into the financial system via seven-day reverse repos on Friday.

However, for the week, the Chinese central bank drained a net 450 billion yuan ($63.29 billion), the biggest weekly net drain since mid-February, compared with 670 billion yuan of injection on a net basis a week earlier, as cited by Reuters.

PBOC noted: “Friday’s fund injection was to counteract the impact from factors including maturing reverse repos and financial institutions’ reserve requirement payments, and in order to keep banking system liquidity “reasonably ample”.”