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Updated: 2005-06-22 15:46
 
Central Bank drains RMB653.89 billions

2005年前五个月,中国人民银行在其上市业务中共获得6538.9亿元的净收益。

 

Central Bank drains RMB653.89 billions
Central Bank drains RMB653.89 billions

China's central bank mopped up a net 653.89 billion yuan (US$79 billion) from the banking system in the first five months of this year in open-market operations, approaching the full-2004 level, as it tries to head off economic overheating.

The central bank has made open-market operations an increasingly important tool to absorb yuan liquidity as a result of efforts to keep the currency stable and curb credit.

The central bank conducts open-market operations with banks, insurers, brokerages and rural credit cooperatives on China's national interbank market in Shanghai.

“The interest rates on the central bank bills have been falling continuously since the start of 2005,” the People’s Bank of China said, a trend it said reflected ample liquidity on the money markets.

The bank had drained 1.198 trillion yuan from the banking system through issuing bills and 90 billion yuan by entering repurchase agreements, the central bank said. Matured repurchase agreements in the January-to-May period allowed the bank to take 36.9 billion yuan from the banking system.

The central bank released 671 billion yuan into the banking system through various channels, including matured bills worth 544.2 billion yuan and matured reverse repurchase agreements of 90 billion yuan, according to the central bank. The figures were earlier reported by the Economic Daily.

The central bank has said it spent a staggering 1.61 trillion yuan buying foreign currency in 2004 to maintain the yuan peg against the U.S. dollar, a rise of 40 percent over 2003. As a result of the intervention, the central bank had to drain a net 669 billion yuan from the banking system via open-market operations in 2004 — more than double that of 2003.

China has managed the yuan in a razor-thin range of 8.276 to 8.28 against the U.S. dollar since 1997. Strong trade surpluses and a heavy inflow of foreign investment have left the market flush with foreign exchange in recent years.

(Shenzhen Daily)

 

Vocabulary:
 

mop up : 完成,做好,扫尾,肃清

head off : 阻止,拦截

liquidity: the quality of being readily convertible into cash:(资产折现力,易于变成现金的性质)

brokerage: a firm engaged in buying and selling stocks and bonds for clients(经纪人企业,代理公司,专门从事为客户买卖股票和债券的公司)

 

 
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