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The PBOC is expected to continue to.....>

CHINA PRESS
CHINA PRESS: The PBOC is expected to continue to halt open market operations
(OMO) after skipping OMOs for three days this week as liquidity in August will
likely remain at a high level, China Securities Journal reported. The PBOC's
monetary policy tools have always followed the pace of fiscal revenue and
expenditure, thus the PBOC may pause the OMOs until early August, the newspaper
said. However, the depreciation of the yuan against the U.S. dollar may result
in reduced forex purchases, which together with large issuance of government
bonds, could lead to a potential shock to liquidity, the newspaper added, citing
anonymous traders.

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