The People’s Bank of China (PBoC) suspended its regular open market operations on Thursday after saying the country faces credit expansionary pressures amid large inflows of capital. The central bank didn’t sell any bills, repos or reverse repos in the interbank market, according to data on its website. The PBoC said Wednesday that the banking system faces faster liquidity growth as the United States delays pulling back its stimulus measures. The central bank sold 10 billion yuan (US$1.6 billion) of reverse repos on Tuesday, after rolling over 5.5 billion yuan of maturing bills on Monday. With a total of 16 billion yuan of bills and 65 billion yuan of reverse repos maturing, the PBoC is mopping up a net 44.5 billion yuan from the financial system this week.
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