The People's Bank of China (PBC), the country's central bank, said it would not conduct any open market operations for a fourth straight day on Wednesday.
With cash returning, liquidity in the banking system has remained at a relatively high level, according to a statement on the PBC's website.
To maintain stable liquidity in the banking system, the central bank decided to refrain from offering reverse repurchase agreements.
Reverse repos are contracts in which the central bank purchases securities from banks on the condition that the banks buy them back after a specified period, such as seven days. In function, the contracts allow the central bank to inject funds into the domestic financial system for limited amounts of time.
A total of 425 billion yuan ($61.82 billion) of reverse repos matured from Sunday to Wednesday, according to -Global Times calculations based on figures reported on Wednesday by the financial news website caijing.com. Another 900 billion yuan in contracts will mature next week.
By suspending reverse repos, the PBC has effectively withdrawn 425 billion yuan from the financial system over the last four days.
