China Withdraws Cash From Banking System Amid Yuan Pressure

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PBOC drained a net $414 million Monday, while holding its one-year policy loan rate unchanged, as the Third Plenum gets underway in Beijing. Photo: Bloomberg

(Bloomberg) — China withdrew cash from its banking system for a fifth consecutive month amid caution toward monetary easing as currency depreciation pressures mount.

The People’s Bank of China (PBOC) drained a net 3 billion yuan ($414 million) of cash via its medium-term lending facility (MLF) on Monday, while holding the interest rate on its one-year policy loans at 2.5%, as the Third Plenum gets underway in the nation’s capital. The twice-a-decade meeting of China’s top leadership has at times marked pivotal policy shifts.