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MNI: PBOC Net Drains CNY160 Billion via OMOs

     BEIJING (MNI) - The People's Bank of China (PBOC) skipped open market
operations (OMOs) on Monday. This resulted in a net drain of CNY160 billion
given the same amount of reverse repos matured, according to Wind Information.
- The reserve requirement ratio cut by 0.5 percentage point announced on
September 6 came into effect today and is expected to release about CNY800
billion of long-term funds, the PBOC said. The total liquidity in the banking
system is relatively high, enough to offset the maturity of reverse repos, the
PBOC added.
- The 7-day weighted average interbank repo rate for depository institutions
(DR007) rose to 2.6477% at 0939 local time from the close of 2.6383% last
Thursday: Wind Information.
- The CFETS-NEX money-market sentiment index closed at 40 last Thursday vs 39 on
Wednesday.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MGQ$$$,MN$MM$]

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