January 16, 2013 / 5:56 AM / 5 years ago

China's money rates fall after large foreign exchange buys

* China buys 134.6 bln yuan worth of foreign exchange in Dec
    * Dealers are optimistic about holiday money demand

    By Chen Yixin and Pete Sweeney
    SHANGHAI, Jan 16 (Reuters) - China's money rates fell on
Wednesday on ample liquidity and after data showed the country
was a net buyer of foreign exchange in December.
    Large foreign currency purchases constitute the creation of
more base money and increase liquidity. 
    China's central bank and commercial banks bought 134.6
billion yuan ($21.64 billion) worth of foreign exchange on a net
basis last month, central bank data showed on Tuesday.
    The benchmark weighted-average seven-day bond repurchase
rate fell 4 basis points to 2.77 percent from 2.81
percent at the close on Tuesday.
    The 14-day repo rate was down slightly to
2.77 percent from 2.80 percent, and the one-day repo rate
 fell to 2.06 percent from 2.07 percent.
    Dealers said they believe there is enough liquidity to get
the system through the Spring Festival holiday smoothly. China's
financial markets close from Feb. 9 to 17 for the Lunar New
                                 Current  Prev close  Change
                                       (pct)           (bps)  
7-day repo         2.7668     2.8124    - 4.56
7-day SHIBOR           2.7880     2.8710    - 8.30  
 Note: Repo rate is weighted average.
($1 = 6.21 Chinese yuan)

 (Editing by Jacqueline Wong)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below