China's central bank is withdrawing liquidity from the market

The People's Bank of China has begun to withdraw the liquidity it provided to the market to meet the increasing cash demand towards the end of the year. The People's Bank of China provided only 2 billion yuan of cash to the market with the 7-day reverse repo operation it organized today. With the reverse repo return of 386 billion yuan, only 2 billion yuan was given to the market today, thus withdrawing 384 billion yuan of liquidity from the banking system. With the 384 billion yuan withdrawn today, the liquidity that the People's Bank of China has withdrawn from the market since the beginning of the week broke a record of 1 trillion 601 billion yuan.