Daily open market operations from the People's Bank of China are used to alter liquidity domestically in the banking system
- The bank introduced the operations in 2016
- So far throughout November 2019 the Bank has not conducted any at all, the longest run since introducing the tool
China Securities Journal reports today the Bank may continue to refrain for the rest of the month. Citing loose liquidity conditions, expected to carry on with government spending adding cash.
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Any adds of liquidity could be helpful as a support for Chinese stocks. I am surprised there haven't been any.
What is this to do with FX? Well, its all connected, but the post is mainly for share/index traders.
