China’s central bank continued to drain liquidity Thursday, mopping up 52 billion yuan (US$8.46 billion) through open market operations, Xinhua reported Thursday. The People’s Bank of China said it conducted a 14-day forward repurchase operation (repo) of 32 billion yuan at a bid rate of 3.8 percent and a 28-day repo of 20 billion yuan at 4 percent. Along with Tuesday’s 28-day repo, the central bank drained a total of 98 billion yuan this week, pushing up interbank lending rates, the report said. The overnight of Shanghai Interbank Offered Rate, a gauge of interbank borrowing costs, moved up 13.8 basis points to 2.66 percent, while the seven-day rate advanced 94.4 basis points to 4.81 percent, it said.
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