Central Bank of China drained 20 billion yuan from market

Beijing. July 3. Silkroadnews - This week China’s central bank drained 20 billion yuan (about $3 billion) from the financial system to ensure stable liquidity, Sina.com reported.
The People’s Bank of China (PBOC) began to place funds on the market through reverse repo, while 20 billion yuan remained in contracts maturing, which means a net withdrawal of 20 billion yuan.
According to the PBOC, a relatively high level of liquidity in the banking system can compensate for the impact of securities maturing.
A reverse repo is the process through which the central bank offers and purchases securities from the commercial banks, with an agreement to sell them back in the future.
Last month, the PBOC announced that it would reduce the required reserves ratio (RRR) for some commercial banks by 50 basis points, expecting to release a total of 700 billion yuan into the banking system.
China will maintain a prudent and neutral monetary policy in 2018 to balance the growth of the economy and prevention of risks, the report reads.