China's central bank continues to skip reverse repos

BEIJING - China's central bank skipped reverse repos for a fifth work day on Wednesday, citing abundant liquidity in the financial system.

"The relatively high liquidity level in the banking system can offset the impact from factors including maturing reverse repos," the People's Bank of China (PBOC) said on its website.

With 60 billion yuan ($8.5 billion) of reverse repos maturing Wednesday, the PBOC effectively withdrew the same amount of money from the market.

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 its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.