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China in Longest Streak of Liquidity Withdrawals Since February

  • PBOC drained funds for seven straight days in daily operations
  • China’s 7-day repurchase rate fell to lowest in over two years
Updated on

China’s central bank drained cash from the banking system for a seventh straight day as market rates plummeted amid ample liquidity.

The People’s Bank of China withdrew a net three billion yuan ($442 million) in open market operations on Tuesday, draining a total of 18 billion yuan since July 25. That’s the longest period of net withdrawals since February in open market operations.