China Withdraws Cash From Banking System Amid Yuan Pressure
- PBOC refrains from liquidity injection for fifth month
- Top party leadership to gather for Third Plenum this week
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China withdrew cash from its banking system for a fifth consecutive month amid caution toward monetary easing as currency depreciation pressures mount.
The People’s Bank of China drained a net 3 billion yuan ($414 million) of cash via its medium-term lending facility on Monday, while holding the interest rate on its one-year policy loans at 2.5%, as the Third Plenum gets underway in the nation’s capital. The twice-a-decade meeting of China’s top leadership has at times marked pivotal policy shifts.