Higher USD? - no thanks says the PBOC. CNY highest since November 2015 against the USD
The Bank skips OMOs today
- cites relatively high banking system liquidity
- net drain 270bn yuan today
- net drain 320 bn yuan for the week via OMOs
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A few items from China this morning:
China Securities Journal front-page commentary written by a reporter
- Monetary policy is expected to stay prudent and neutral
- not yet a window for "traditional" interest rate increase,
- China would raise benchmark interest rates within the year if economic growth speeds up and inflation increases substantially
Xinhua says targeted RRR cuts have had limited impact on liquidity
- PBOC to withdraw liquidity in OMOs
- PBOC may adjust OMOs for deleveraging impact