China’s central bank drained cash from the banking system for a seventh straight day as market rates plummeted amid ample liquidity, reports Bloomberg.
The People’s Bank of China withdrew a net RMB 3 billion ($442 million) in open market operations on Tuesday, draining a total of RMB 18 billion since July 25. That’s the longest period of net withdrawals since February in open market operations.
Policymakers have sought to keep liquidity conditions in the banking system ample to support the economy battered by COVID outbreaks and a slowing property sector. However, the demand for loans has remained tepid, leaving a glut of cash that’s failing to trickle through into the financial system.
