China's central bank continues to skip open market operations

BEIJING, March 29 (Xinhua) -- China's central bank continued to skip open market operations Friday, citing abundant liquidity in the banking system.

No reverse repos will mature on Friday, according to the People's bank of China.

Overall liquidity had been at a relatively high level due to large fiscal spending at the end of the first quarter, it said.

While skipping reverse repos for eight consecutive working days, the central bank has drained a net 110 billion yuan (about 16.34 billion U.S. dollars) from the market this week.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China will keep prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019, according to the annual central Economic Work Conference held last year.