China's central bank drains $1 billion from market

China's central bank on Wednesday drained 10 billion yuan (about $1 billion) from the market to ensure a stable money supply.

The People's Bank of China (PBOC) put 70 billion yuan into a seven-day reverse repos, a process by which central banks purchase securities from banks with an agreement to sell them back in the future, Xinhua news agency reported.

The reverse repo was priced to yield 2.25%, according to a PBOC statement.

Meanwhile, reverse repos worth 80 billion yuan mature on Wednesday, so the central bank has effectively drained 10 billion yuan from the market.

On Wednesday's interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor) stayed unchanged at 2.011%.

The Shibor for seven-day loans increased 0.1 basis point to 2.332%. The Shibor for three-month loans also rose 0.69 basis point to 2.9227%.

The central bank had drained 20 billion yuan from the market on Tuesday.