China bank removes $8B from money markets

Feb 18, 2014, 5:19 AM EST
This picture taken on September 24, 2013 shows Chinese 100 yuan (RMB) bank notes being counted at a bank in Huaibei, in eastern China's Anhui province. With deals from London to Singapore, China is seeking to have its yuan currency used more widely around the world and challenge the hegemony of the almighty dollar.
AFP/Getty Images

China's central bank has removed nearly $8bn (£4.7bn) from the money markets in a bid to control the amount of credit in the country's financial system. According to reports, the People's Bank of China (PBOC) did so by issuing 14-day forward bond repurchase agreements, also known as forward repos. It is the first time since June the PBOC has used forward repos, and comes after China released unusually strong economic data earlier this year.
Background:
China removes $8bn from money markets to control lending [BBC]
 

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