China skips open market operations for 18th trading day

BEIJING - China's central bank has suspended open market operations for 18 trading days in a row, citing abundant liquidity in the financial system.

Liquidity in the banking system is at a "relatively high" level, which can offset the impacts from factors such as tax season, the People's Bank of China said on its website Tuesday.

No reverse repos will mature Tuesday.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

On Tuesday's interbank market, the overnight Shanghai Interbank Offered Rate, which measures the cost at which banks lend to one another, rose by 21.5 basis points to 2.328 percent.

China will continue to implement a proactive fiscal policy and prudent monetary policy while making policies more forward-looking, flexible, and effective, according to a meeting of the Political Bureau of the Communist Party of China Central Committee on July 31 this year.

The country will maintain control over monetary supply and keep liquidity at a reasonable and ample level, the meeting said.