China's central bank skips reverse repos Friday

BEIJING - The People's Bank of China (PBOC), the country's central bank, skipped reverse repos for the eighth day on Friday.

The banking system reports a relatively high level of liquidity at present to offset the impact of reverse repos maturing, the PBOC said in a statement.

Reverse repos worth 150 billion yuan ($21.5 billion) matured Friday, meaning the central bank withdrew the same amount of funds from the financial market.

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

The country will continue to implement a proactive fiscal policy and prudent monetary policy, according to the annual Central Economic Work Conference held in December 2019.

The quality and effect of the fiscal policy must be enhanced with more efforts on structural adjustment, while the monetary policy should be pursued with moderate flexibility to maintain market liquidity at a reasonably ample level, said a statement released after the conference.