China's Central Bank Drains 10 Billion Yuan from Market

China's central bank on Thursday allowed 10 billion yuan about (1.52 billion US dollars) to drain from the market to ensure a stable money supply.

    The People's Bank of China (PBOC) put 75 billion yuan into seven-day reverse repos, a process by which central banks purchase securities from banks with an agreement to sell them back in the future, according to China's (Xinhua) News Agency.

    The reverse repo was priced to yield 2.25%, according to a PBOC statement. Reverse repos worth 85 billion yuan mature on Thursday, so the central bank has effectively drained 10 billion yuan from the market. 

    On Thursday's interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor) stayed unchanged at 2.001%. The Shibor for seven-day loans increased 0.1 basis points to 2.332%. The Shibor for three-month loans also rose 0.25 basis points to 2.941%.