PBOC to skip OMOs Friday, takes weekly net drain to 160bn yuan

SHANGHAI: China's central bank said it will skip open market operations on Friday as liquidity levels in the banking system were "reasonable and appropriate".

For the week, the People's Bank of China (PBOC) will have drained a net 160 billion yuan ($25.45 billion) from the money market, compared with a net drain of 320 billion yuan a week earlier.

The PBOC increased the rate on 7-day reverse repurchase agreements by 5 basis points (bps) to 2.55 percent last Thursday, following the US Federal Reserve Bank's move.

China's central bank drained 65 billion yuan on a net basis from money markets in 2017.